The Lagos Zone of the Tax Appeal Tribunal has ordered the Grandfoundry and Works Limited to pay Federal Inland Revenue Service the sum of ₦14,468,384.00 (Fourteen Million, Four Hundred and Sixty-Eight Thousand, Three Hundred and Eighty-Four Naira) only as indebted payment for the Company lncome Tax, Education Tax and Value Added Tax liabilities covering the period between 2008-2013 years of assessment.
The Panel held that with all the assessments served on the firm, there is no evidence before the Honorable Tribunal that these assessments were objected to by the firm within the stipulated time of 30days allowed by law that the tax assessments on the firm have become final and conclusive.
From facts, the appellant- Federal Inland Revenue Service had submitted that the Grandfoundry and Works Ltd was captured in the Tax Audit exercise of the 2008-2013 years of assessment and established that the firm owned the Company lncome Tax, Education Tax, and Value Added Tax liabilities to the tune of ₦14,468,684.00 (Fourteen Million, Four Hundred and Sixty-Eight Thousand’ Three Hundred and Eighty-Four Naira) only.
The Tax authority averred that the firm neglected and failed to pay the tax liabilities neither did it raise an objection served on it and failure of the respondent to raise an objection to the assessment within the stipulated time allowed by the law, the outstanding tax liability is final and conclusive; urged the tribunal to grant the reliefs sought.
However, despite the exparte-order granted by the tribunal to the effect that, all the processes be pasted at the firm’s last known address, the respondent failed to defend the matter.
The tribunal In its considered judgment at a panel headed by Prof. A.B. Ahmed Esq as Chairman, P.A. Olayemi, Esq, and Babatunde Sobamowo Esq, Samuel Ohwerhoye Esq, Terzungwe Gbakighir Esq as members held that by the combined provisions of CITA, a tax-payer has the opportunity to object to any tax assessment by the FIRS within a time frame which is 30days, failure upon which the said assessment becomes final and conclusive.
The panel held that with all the assessments served on the firm, there is no evidence before the Honorable Tribunal that these assessments were objected to within the stipulated time, which is 30days, by law, ordered the firm to pay the tax authority the sum of ₦14,468,684.00 (Fourteen Million, Four Hundred and Sixty-Eight Thousand’ Three Hundred and Eighty-Four Naira) as assessed.
SOURCE: LOYAL NIGERIAN LAWYER