THE Court of Appeal, Lagos Division, at the weekend, upheld the March 12, 2007, Justice Lateefat Okunnu’s ruling of the Lagos High Court, granting Chartered Institute of Taxation of Nigeria (CITN), the power to regulate tax administration in the country.

The ruling was sequel to an appeal by the Institute of Chartered Accountants of Nigeria (ICAN), challenging the verdict of the lower court, which granted the mandate of tax administration in the country to CITN.

Briefing newsmen of the ruling in Lagos, the President, CITN, John Jegede explained that CITN had approached the Lagos High Court in 2005 in the case of CITN (Claimant) vs. ICAN (Defendant) to determine whether by virtue of the Acts establishing ICAN and CITN, the then Claimant was not the only body vested with power to regulate the taxation profession in Nigeria and whether members of ICAN who had not registered with CITN can practice taxation or hold themselves out as tax practitioners in Nigeria.

Jegede said the Justice Okunnu`s rulling had in 2007, among others declared that: that taxation was legally recognised in Nigeria as a profession separate and distinct from the accountancy profession; that the Claimant was vested with power to regulate and control the practice of taxation in all its ramifications to the exclusion of the Defendant and any other professional body or institute in Nigeria; that it was illegal for any member of the Defendant who is not a member of the Claimant to practise, or hold him out as practising, as a tax administrator or tax practitioner for, or in expectation of, a reward in Nigeria.

According to Jegede, other declaration in that sequence includes; that it was unlawful for the Defendant to forestall or impede the Claimant’s efforts to regulate tax practice and that an order of perpetual injunction was made restraining members of the Defendant who are not members of the Claimant from practising, representing, or holding themselves out as tax administrators or practitioners in violation of the Chartered Institute of Taxation of Nigeria Act No. 76 of 1992, Cap. C10 of the Laws of the Federation of Nigeria, 2004.

Not satisfied with the decision of Okunnu, J., the CITN boss said ICAN filed an appeal in Appeal No. CA/L/673/07 at the Court of Appeal, Lagos Division and that the appeal was decided on Friday, February 15, 2013.

He said the Court of Appeal in its judgment upheld the 1st, 2nd and 5th reliefs granted by the court, while setting aside the 3rd and 4th reliefs earlier granted in favour of CITN.

“We are happy with the outcome of the appeal as the Court of Appeal has restated: That taxation is a separate and distinct profession from accountancy in Nigeria.

“That CITN is the only professional body vested with power to regulate and control taxation in all its ramifications to the exclusion of ICAN and any other professional body in Nigeria.

“That only members of CITN can present or hold out themselves as tax practitioners and administrators”, he stated.

Jegede, who used the occasion to solicit for improved tax administration in Nigeria, said that, “despite the outcome of this judgment, CITN will continue to maintain its cordial relationship with ICAN. CITN hopes that these sister institutes would leverage on this cordial relationship to the benefit their members.”

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Just in case you wish to know

Chartered Accountants can practice taxation unhindered, says ICAN

By BABAJIDE KOMOLAFE

The Institute of Chartered Accountants of Nigeria (ICAN) has insisted that its members can practice taxation unhindered.

In a statement issued weekend, ICAN President, Mr. Adedoyin Owolabi, said that the judgment of February 15, 2013 by the Court of Appeal did not restrained its members who are not members of Chartered Institute of Taxation  (CITN) from practicing taxation.

He said that the judgment has rather vindicated ICAN MEMBERS and made it clear that there is no order restraining members of the Institute from practicing tax in Nigeria.

“As a matter of fact, the two key reliefs sought by CITN, which form the kernel of the controversy between the two bodies (reliefs 3 & 5), were actually set aside by the court, namely:  A declaration that it is illegal for any member of the defendant (ICAN) who is not a member of the Claimant (CITN) to practice or hold himself out to practice as a tax administrator or practitioner for or in expectation of reward in Nigeria;  “An order restraining members of the Defendant (ICAN) who are not members of the Claimant (CITN) from practicing, representing or holding themselves out as Tax”

“For the avoidance of doubt, we hereby reiterate that while the Court of Appeal held that Taxation is a profession distinct from Accountancy and gave CITN powers to regulate and control the practice of taxation, CITN was denied the right to declare it illegal for ICAN members who are not members of CITN to practise as Tax administrators for a reward in Nigeria.

“The Court of Appeal also refused to grant a perpetual injunction restraining ICAN members who are not CITN members from practicing, representing or holding themselves out as Tax Administrators or Practitioners in violation of the Chartered Institute of Taxation of Nigeria Act No. 76 of 1992 Cap C10 LFN 2004.  The import of the judgement is clear to all and sundry: ICAN members can practise taxation unhindered without being members of CITN.”

“ICAN wishes to use this medium to appeal to its members, other stakeholders and the public at large not to be misled by the media hype. The court ruling, which nobody can alter, is available for all to read and draw their conclusions there from.

As a law abiding body of respectable professionals, ICAN, which was established by the Act of Parliament No 15 of 1965, has operated within the limits of the rule of Law in the past forty eight years. Our motto is Accuracy and Integrity and we will not allow anything to distract or derail us,” the statement said.

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