The Court of Appeal, Abuja division, has granted the appliance of the Lagos state authorities as a co-respondent within the enchantment filed by the Federal Inland Revenue Service (FIRS).
The FIRS is difficult the judgment of the Federal High Court, Port Harcourt, which restrained the company from accumulating Value-Added Tax (VAT) and private earnings tax (PIT) in Rivers state.
At the decrease court docket, the FIRS had appealed for a keep of execution, however the court docket dismissed it on the premise that it might “negate the principle of equity”.
Consequently, FIRS went to the court docket of enchantment.
On September 10, Lagos State Attorney General, Moyosore Onigbanjo had utilized to the Court to be joined as a co-respondent within the enchantment. The state had additionally handed a VAT invoice into regulation.
Onigbanjo had submitted that the result of the enchantment would have a direct affect on the state.
“My lord, it is not in dispute that Lagos, one of the federating states in Nigeria, is entitled to collect VAT and that’s our interest,” he mentioned.
“Even the appellant recognised that the Lagos state government has an interest in the matter in their affidavits in support of stay of execution where copious reference was made to the Lagos state government.”
The Muhammadu Buhari-led authorities has been locked in a authorized battle with Rivers State authorities over which authorities ought to gather Value-Added Tax —state or federal.