The Federal Inland Revenue Service (FIRS) has urged taxpayers in the country not to be perturbed by the Federal High Court sitting in Port Harcourt ruling which dismissed its motion for stay of execution of the judgment that Rivers State can collect Value Added Tax (VAT) from its residents.
The federal revenue agency stated that “until the Court of Appeal, or even the Supreme Court, determines the matter, taxpayers are required to continue to comply with their Value Added Tax (VAT) obligations within the status quo framework.”
The position of the FIRS on the latest court ruling was expressed in a statement issued by the Special Assistant to the Chairman of the FIRS on Media and Communications, Johannes Wojuola.
The statement reads: “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 judgment assures taxpayers that there was 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 the appeal.
“Taxpayers must continue to honour their tax obligations under the VAT Act. Failure to do this would put them on a collision course with the law.
“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 revenue agency maintained.
