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Private Jet Owners Sue Govt Over N30bn Tax by Islie: 7:49am On Nov 30, 2022
Owners of foreign-registered private jets, comprising top business moguls, leading commercial banks and other rich Nigerians, have dragged the Federal Government to court seeking to prevent the government from grounding their planes for allegedly refusing to pay import duty on the jets.

The Federal Government had last November approved the decision of the Nigeria Customs Service to ground 91 private jets belonging to some wealthy Nigerians over their alleged refusal to pay import duties running to over N30bn.

As such, following a presidential approval, the NCS in a letter directed the Nigerian Civil Aviation Authority, the Federal Airports Authority of Nigeria, and the Nigerian Airspace Management Agency to ground the affected private jets with immediate effect.

But owing to issues bothering on inter-agency rivalry and disagreements, the relevant government agencies could not ground the private jets.

However, in the past few months, the Customs has been making underground moves to perfect the process of grounding private jets whose owners failed to pay the import duty, multiple sources close to the development confirmed to The PUNCH on Tuesday.

17 jet owners

Also, further findings by our correspondents over the weekend revealed that at least 17 private jet owners had gone to court to stop the Federal Government from implementing the order.

According to the court papers seen by The PUNCH, the jet owners are seeking a judicial review as to whether it is lawful for them to pay the controversial import duty on their private jets or not.

The jet owners had sued the government using the foreign shell companies and trustees through which the foreign-registered jets were purchased.

Oftentimes, Nigerians and corporate bodies buy their foreign-registered private jets through foreign shell companies and trustees. Experts believe they often prefer to register the jets in foreign countries like the United States, United Kingdom, and Isle of Man, among others, to preserve the value of the aircraft in the event they want to sell it, as well as pay cheaper insurance premiums.

The latest findings showed that the jet owners had approached the Federal High Court Abuja seeking the court to determine, among other things, if they were liable to pay import duty.

The suit, with number FHC/ABJ/CS/1565/2021, is described as the matter of an application for judicial review by foreign registered aircraft against the Nigeria Customs Service and Nigeria Civil Aviation Authority.

According to the court document, the 17 applicants, which are mostly foreign companies of the Nigerian jet owners are: Aircraft Trust and Financing Corp Trustee, UAML Corp, Bank of Utah Trustee, Masterjet AVIACAO Executive SA, and Cloud Services Limited.

Others are MHS Aviation GmbH, Murano Trust Company Limited, Panther Jets, SAIB LLC, Empire Aviation Group, and Osa Aviation Limited.

The list also includes BUA Delaware Inc, Flying Bull Corporation Limited, Air Charter Inc, Sparfell Luftahrt GmbH, WAT Aviation Limited, and ATT Aviation Limited.

The NCAA and Customs were listed as respondents.

In a written address in support of the first respondents objector notice of preliminary objection, the court paper read in part, “The brief facts of this case are that the first respondents, having discovered that some operators of aircraft imported them under the guise of Temporary Importation Permit, were permanently imported into Nigeria and given TIP status to evade payment of lawful customs.”

A hearing date is yet to be fixed for the suit, according to preliminary findings by our correspondent.

However, there are strong indications that the NCS is making frantic efforts to get the private jet owners to pay the import duty.

Multiple sources confirmed on Tuesday that the NCS was not giving up on the decision to collect the revenue on behalf of the Federal Government, having obtained a presidential approval on the matter.

It was gathered that the agency might take a major decision on the matter very soon. It was further learnt that the Customs is in possession of government documents indicating that the private jet owners are by law required to pay import duty.


NCAA reacts

However, the spokesperson for NCAA, Mr Sam Adurogboye, said he was yet to be briefed but noted that, “’If a case is filed against an individual or organisation, what is to be done is to put up appearance and defend oneself.”

The NCS had in March last year embarked on a review of import duties paid on private jets brought into the country since 2006.

Following the alleged discovery that several private jet owners, under the guise of Temporary Import Permit, had failed to pay the statutory import duty to the coffers of the government, the CG of Customs, Hameed Ali, set up a verification panel to review all TIPs and the relevant aircraft import documents of all private jets in the country.

At the end of the 60-day exercise, 57 private jets, which had licences for commercial charter operations, were cleared and issued with Aircraft Operators Certificate by the Customs.

However, 29 private jets, whose owners came for the verification, were found to be liable to pay the import duty.

The Customs also compiled a list of another 62 private jets whose owners failed to appear for the verification exercise but were found liable for import duty payment.

However, other private jet owners seeking to pay their import duty were given a 14-day ultimatum to clear the debts.

It is unclear the number of the jet owners that later paid the duty.

However, a list of 91 private jets whose owners had failed to present themselves for the import duty payment were presented to the NCAA, FAAN, and NAMA for the immediate grounding of their operations.

Some owners of the 91 jets reportedly wrote protest letters to the NCS, arguing why they could not pay the import duty because the jets were under lease payments.

The Customs, in its response to the letters, queried the rationale for bringing in the planes and allegedly fraudulently exporting them under questionable documentation processes in the past 10 years.

Unconfirmed officials had said the Ministry of Aviation directed the NCAA, FAAN and NAMA to suspend the grounding of the flight operations of the affected private jets.


Aircraft owners speak

Speaking on the development on Tuesday, the President, Association of Private Aircraft Owners Association, Mr Alex Nwuba, there is a need for the government to become transparent in the process of registering private jets.

He also said it might be difficult for the government to collect tax on private jets that are not fully imported into the country.

He said, “The idea is to ensure that people pay tax on imported aircraft. However, by keeping the registration of the jets offshore, how do you then pay tax on something that is foreign? The aircraft may have come and gone, but how do you pay tax on something that is not imported.

“The dilemma is if you register your private jet in Nigeria (5N), it is seen that it now have a lower value. The problem is that there is no transparency in our aircraft registration process. You cannot take the number of the aircraft, do a search and get the details. But if you do that for US-registered plane, you can get the details. But the summary is that you cannot collect duty on aircraft that is not imported.”

Nwuba, a pilot and former managing director of Associated Airlines, said the cost of duty might be one of the factors discouraging some private jet owners.

He said, “Of course, you are made to put up a bond when you are bringing in an aircraft on a temporary basis. However, while we are looking for revenue, it is not everywhere we can get it. Another issue is that, if you buy a private jet for $80m, you may need to pay a duty of over $10m; that may be high to some people.”

Some of the 91 private jets meant to be grounded belong to the senior pastors of some popular Pentecostal churches in the country, some Tier-1 banks with one of the banks owning two upmarket jets, the CEOs of some indigenous oil companies, and the chairmen of some Tier-1 banks.

https://punchng.com/private-jet-owners-sue-govt-over-n30bn-tax/?amp

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Re: Private Jet Owners Sue Govt Over N30bn Tax by Yankiss(m): 8:13am On Nov 30, 2022
Lawlessness in Nigeria by the rich. Laws are meant for the poor. How do you fully import or partly import. In my little knowledge, import is import. The evasion of import duties under which ever guise is regretted. The rich can get away with just anything in Nigeria.

And Buhari's government lack of coordination among agencies. Planes ordered grounded were still on wings. What PMB is good at is borrowing and borrowing. Not recovery of debts and taxes/duties like this. N30b na beef? And there are many others with open tax waivers and others discreetly evading same.

34 Likes 9 Shares

Re: Private Jet Owners Sue Govt Over N30bn Tax by NwaNimo1(m): 8:13am On Nov 30, 2022
Re: Private Jet Owners Sue Govt Over N30bn Tax by Omojolaray(m): 8:13am On Nov 30, 2022
Everything jaga.................

2 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by salbis(m): 8:13am On Nov 30, 2022
Land full of hunger in the midst of plenty....

VOTE WISELY PLEASE.

21 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by GODPUNISHALABI: 8:14am On Nov 30, 2022
This one no consign nairalanders wey dey use legedez airlines

46 Likes 2 Shares

Re: Private Jet Owners Sue Govt Over N30bn Tax by factcheckmmm: 8:14am On Nov 30, 2022
Why 30 billion

Is it a crime to own one

7 Likes

Re: Private Jet Owners Sue Govt Over N30bn Tax by cbrezy(m): 8:14am On Nov 30, 2022
grin grin

1 Like

Re: Private Jet Owners Sue Govt Over N30bn Tax by Omojolaray(m): 8:14am On Nov 30, 2022
factcheckmmm:
Why 30 billion

Is it a crime to own one
way of collecting the fund dey paid for Der services

2 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by Solofresh2: 8:14am On Nov 30, 2022
Them never see anything grin

2 Likes

Re: Private Jet Owners Sue Govt Over N30bn Tax by Kizyte(m): 8:15am On Nov 30, 2022
In Billionaire Prince White's voice... this one no concern poor masses

18 Likes 2 Shares

Re: Private Jet Owners Sue Govt Over N30bn Tax by Edugist4u: 8:15am On Nov 30, 2022
Let's wait till I get my own private jet. For now nothing concern me

2 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by house10studios: 8:15am On Nov 30, 2022
30b jeez.

Even if dey pay from inside nah pocket e dey go

3 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by Juniorpope123: 8:15am On Nov 30, 2022
Yes....we are suing FG grin

3 Likes

Re: Private Jet Owners Sue Govt Over N30bn Tax by tolumizzy(m): 8:15am On Nov 30, 2022
Yes....we are suing FG grin

1 Like

Re: Private Jet Owners Sue Govt Over N30bn Tax by Nobleou(m): 8:16am On Nov 30, 2022
Nigeria Government is very very very useless...

Depending on masses to loot

4 Likes 2 Shares

Re: Private Jet Owners Sue Govt Over N30bn Tax by Spaxon(f): 8:16am On Nov 30, 2022
Whaala
Re: Private Jet Owners Sue Govt Over N30bn Tax by Megir: 8:18am On Nov 30, 2022
They should pay. No be person wey belle full dey get private jet?

5 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by Patriotsleague: 8:18am On Nov 30, 2022
It's luxury goods tax, myopic clowns, why not invest that money and create jobs for your people, with all the kidnapping you rich clowns can not see unemployment is one of the reasons Biafra youths and fulani youths have all turned to terrorists and kidnapping bandits, you destroy our economy and reduce naira value by ordering such expensive luxury item from abroad. Good taxing by government. In the UK, you know how much they pay?

Even when UK produces private jet technology.

You can't sue government for enacting monetary policy, it's done to regulate economy. Stop buying private jets.

13 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by emmadejust(m): 8:18am On Nov 30, 2022
So private jet are registered in foreign country so as to easily sell it, and also avoiding paying tax to where it operated ..

Money language is best understand when you are loaded

7 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by Kavod: 8:18am On Nov 30, 2022
Solofresh2:
Them never see anything grin
This kind news sweet me.... Abeg who and who get those jets? Make them publish their names so we go decide if we go sorry for them.
Them wan rob CAESAR, but them nor wan remit...

6 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by simplepee(f): 8:18am On Nov 30, 2022
Even the rich are not left out in this cruel treatment by the government.

1 Like 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by Megir: 8:19am On Nov 30, 2022
Nobleou:
Nigeria Government is very very very useless...


Depending on masses to loot
What's wrong with you? If you're wealthy enough to have a PJ, then you don't belong to the masses class.

8 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by michlins(m): 8:19am On Nov 30, 2022
Wahala for rich people. Nothing concern average Nigerian with this

1 Like 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by Megir: 8:20am On Nov 30, 2022
Patriotsleague:
It's luxury goods tax, myopic clowns, why not invest that money, you destroy our economy and reduce naira value by ordering such expensive luxury item from abroad. Good taxing by government. In the UK, you know how much they pay?

Even when UK produces private jet technology.
Tell them.

5 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by Mrkumareze(m): 8:20am On Nov 30, 2022
Ownership of het has been an easy thing, both home n abroad. Paying for parking lot alone na capital money

1 Like

Re: Private Jet Owners Sue Govt Over N30bn Tax by phemmyjohnson: 8:20am On Nov 30, 2022
Association of private aircraft owners lol I’m rolling
Re: Private Jet Owners Sue Govt Over N30bn Tax by Barims(m): 8:21am On Nov 30, 2022
Nice one, especially those stupid pastors they should increase their own to 50 billion

5 Likes 1 Share

Re: Private Jet Owners Sue Govt Over N30bn Tax by Olaolex: 8:21am On Nov 30, 2022
Some people will come here now and start defending federal government. Mad set of people.

2 Likes 1 Share

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