The agency warns that defaulters may pay penalty for not maintaining the "status quo".

By Oge Udegbunam
The Federal Inland Revenue Service (FIRS) has urged taxpayers, especially in Rivers State, to continue to pay their Value Added Tax (VAT) to it despite a court order against that claim.

It warns that defaulters may be asked to pay fines.

The FIRS has been locked in a contest with the Rivers government over which entity has the right to collect VAT.

The federal government, through the FIRS, has been in charge of VAT, which it then shares to the federal, state and local governments.

That was until a federal high court in Port Harcourt in August ruled that it was the right of the Rivers government to receive VAT in the state. The state argued that it was against the constitution for it to generate VAT that is later shared to other states.

The highly populated Rivers, Lagos and four other states are responsible about 80 per cent of VAT collected in Nigeria.

On Monday, the Federal High Court in Port Harcourt rejected a challenge by the FIRS against the ruling, putting down the agency’s application for an injunction.

The ruling has, at least for now, cleared the way for the Rivers government to enforce its newly passed VAT Act. Lagos on Monday pushed its VAT Bill through the second reading.

Despite the latest development in court, Johannes Wojuola, the special assistant to the chairman of the FIRS on Media and Communications, in a statement Monday urged taxpayers to “remain calm” and maintain the “status quo”.

“The FIRS having lodged, in the Court of Appeal, both an appeal against the decision of the Federal High Court sitting in Rivers State in Suit No. FHC/PH/CS/149/2020, Attorney General of Rivers State Vs Federal Inland Revenue Service, and an injunction pending appeal of the said judgement, assures taxpayers that there is no cause for alarm.

“The Federal High Court ruling should not breed any confusion as to the obligations of taxpayers. Taxpayers must continue to comply with the Value Added Tax Act pending the final determination of appeal,” the statement said.

He said taxpayers “must” continue to pay their tax to the FIRS to avoid paying penalties for failure to do so.

“For the avoidance of doubt, records of appeal have been transmitted to the appellate court. The Service is confident that, given the extant laws, the arguments and case put forward, it will earn a favoured judgment at the appellate court,” the statement concluded.

https://www.premiumtimesng.com/news/top-news/483535-vat-firs-threatens-those-paying-to-rivers-govt-after-losing-in-court.html

That moment when awuff money bi like porridge.

Joke of a nation

it's unfortunate we no longer respect court orders in this part of the world

Beautiful country ruled by unfortunate people

Threat always

That is how they operate

Threatening same people you are working for

But, the sharks have tasted blood, so FIRS should prepare for major showdown

FIRS!

Every state should collect their VAT .

Please you people should help me look for helinues aka monogamy he has created another new moniker and is currently running amok in this politics section

But I know we will expose him soon there is no hiding place for zombies and bmc’s here at all. He can never change the way he jumps into every thread posting his usual thrash. Let’s keep our eyes open for his shenanigans

Lol.
What a low.

___
Everybody should collect their own VAT, in my opinion.
Let everyone reap where they sowed.

This thing will just be end up in double VAT taxation

We all are in it together

PrinceOfLagos:
Joke of a nation

it's unfortunate we no longer respect court orders in this part of the world

Beautiful country ruled by unfortunate people

you nailed it, you have said it all.

The FIRS can't stop the states from collecting VATs

“The Federal High Court ruling should not breed any confusion as to the obligations of taxpayers. Taxpayers must continue to comply with the Value Added Tax Act pending the final determination of appeal,” the statement said.

Lol if you guys lose again you'll start saying maintain status quo until the Supreme Court rules on it. It should be obvious this case will make it way there shortly.

Which status quo? Haven't they lost the case in court Irresponsible federal.. Always disregarding court cases when it does not favour them, and enforcing it totally when it favours them.

I think states ought to collect the taxes and remit a small percentage to the federal coffers.

Payment of tax In a system that doesn't work

I'll fix your phones and laptops at a pocket friendly price

Just check my siggy for more info


Location IKEJA

Lol... Tell kano to stop destroying goods

Great and expected move.

All southern states should take this lane too.

Because Why would the VAT paid on Beer and every alcoholic drink be given to sharia states?

I don't understand.

We need true federalism. Let every state and region manage what they have. We don't need the federal government to share for us.

A decentralised vat is the best for Nigeria

Seriously I don't just understand this idea call one nation .... We av been scam for a long time ooooo .... Awof dey sweet sha .... State monet and u want to share it ..... It's just like my house money , u said I shud share it for the whole street ..... Make other house go hustle na ..... Awof don dey run belle sha .... Very soon all eyes will b open .... It's just a matter of time .. ... I sha knw say e no go better for abubaka abdusalam that give Nigeria diz useless constitution and abasanjo that cant change the constitution when he was a president

Desperados.

chatinent:
That moment when awuff money bi like porridge.

Like I don't understand.

A court order said the state government should collect VAT and you still insist on collecting it. Why don't they just appeal to a higher court order? It's that simple.

Must every agency behave like touts? I still don't understand the disobedience to a court of law.

I don't to even start with the level of impunity in FIRS. Just obey the ruling for now and appeal to a higher court.

They already know the truth but don't want to abide by it.

You lost in the courts. Threaten who?


https://youtube.com/shorts/7nO0SISgL0Q?feature=share



https://www.youtube.com/watch?v=5Lf3WhsByAk

The FIRS can't do anything. You lost in court, you are now behaving like touts. It is this foolishness that made them lose. Instead of employing lawyers, you employ daft ab0kis into FIRS. I even heard that the olodo who they made FIRS Chairman doesn't have ICAN.

There is an obvious lack of intellectualism in the FIRS and lack of commonsense in its leadership.

FIRS is threatening......

I am not understanding..
Court told me not to pay and you are issuing threat to me..
Is there something am missing here?
Imagine using the vat generated in that state to service other states, no be juju be that?

I can only blame all the judges for their incompetent and inconsistent.
This is what envelops and Ghana must go bags of money has brought to our nation through the judges due to their selfishness and self interest.
They are always opposite against each other as if we have different judiciary and constitutions as well.

FIRS still acting jagajaga like the rest of the agencies in this junta. You can't threaten people with penalties when you haven't won your case in court, didn't get a stay of execution or an order maintaining status quo. You just went straight to "penalties" like MC Oluomo's thugs. E go clear you parasites by force

What extant laws is Wujuola referring to? The extant laws made by FIRS or the ones in the constitution of the federal republic of Nigeria? Such a wack, dumb and intellectually daft reasoning. Nigeria is gone to the dogs. It has never been this bad

FIRS is lawless....they should go to court and stop disturbing the masses.

Lol