A Federal High Court, Lagos has fixed the hearing of a suit by MTN Nigeria Communication Ltd against the Attorney General of the Federation’s (AGF’s) challenging the legality of N242 billion and $1.3 billion import duties and withholding tax assessment.
The decision of Justice Chukwujekwu Aneke hearing all pending applications by the telco on the fixed date was sequel to the information availed the court by the parties’ counsels of the various processes filed before the court and served on respective parties to the suit
Chief Wole Olanipekun (SAN) with other senior lawyers appeared for MTN, while Mr T.A Gazali, a Chief State Counsel from the Federal Ministry of Justice, appeared for the AGF.
Following the briefing, Justice Aneke set Dec.3 for hearing of all pending applications before the court.
The MTN filed the suit by a writ dated Sept.10, 2018 challenging mainly, the legality of the AGF’s assessment of its import duties, Withholding Tax (WHT) and Value Added Tax (VAT) in the sums of N242 billion and $1.3 billion.
In its writ of summons, the telecom operator is seeking declaratory reliefs: That the purported “Revenue assets investigation” allegedly carried out by the Federal Government on MTN, for the period of 2007 – 2017, and its decision conveyed through the office of the AGF by a letter dated Aug. 20, violates the provisions of Section 36 of the constitution.
In addition, it also sought “A declaration that the AGF acted in excess of its powers, by purporting to direct through its letter of May 10, a “self assessment exercise” which usurps the powers of the Nigerian Customs Service to demand payment of import duties on importation of physical goods.
“A declaration that the AGF acted illegally, by usurping the powers of the Federal Inland Revenue Service, to audit and demand remittance of withholding tax and value added tax. a declaration that the purported “self assessment” exercise instituted by the AGF via its letter of May 10, is unknown to law, null and void and of no effect whatsoever.
“A declaration that the AGF’s demand of the sums of N242 billion and 1.3 billion dollars from MTN, is premised on a process which is malicious, unreasonable and made on incorrect legal basis. In addition, the plaintiff wants a court order, vacating the AGF’s demand letter dated Aug. 20, for the sums of N242 billion and 1.3 billion dollars from MTN Nigeria Communications Ltd.”
In addition, the telco is claiming also a total sum of N3 billion in damages against the defendant, which covers General damages, exemplary damages, and Legal costs.
However, in its preliminary objection, the AGF argued that the plaintiff in seeking redress to the subject matter, had just three months from the date the cause of action arose, to institute the action.
He argued that the plaintiff commenced the suit, in clear disregard to section 2 of the Public Officers Protection Act, which provides that any action commenced against a public officer must be made within three months from commencement of cause of action.
The AGF posited further that plaintiff’s failure to commence the suit within three months as stipulated by law, robbed the court of its jurisdiction to entertain same.
In a related development, the telecom operator also filed a similar suit before a judge of the same court against the Central Bank of Nigeria (CBN) over alleged $8.1 billion illegally repatriated funds
In the suit, MTN is seeking an injunction to restrain the CBN from taking further actions to reclaim the alleged debts.The suit against the CBN is set for hearing before Justice Saliu Saidu on Dec. 4.
