N1.2bn tax error claim: Parties to explore out-of- court settlement option

Parties in a of alleged .2 billion tax error claims the Tax Tribunal, Abuja on Wednesday agreed to explore an out-of-court settlement.

The appellant, Mr Joseph Daudu, , is challenging the alleged N 1.2 billion error in his taxation by Federal Inland Revenue Service (FIRS).

At the resumed hearing, the counsel to the appellant, Mr Adedayo Adedeji tendered an application which contained the details of options of settlement.

Adedeji however, told the tribunal the hearing could still on if the respondent rejected the options of settlement thereof.

He also confirmed the presence of his witness, an Auditor whom the tribunal directed at the last adjourned date to appear it to give evidence about the appellant’s financial statement and be cross examined.

The tribunal Chairman, Mrs Alice Iriogbe in her response told the parties to key into the out of court settlement option and carry the tribunal along with plans.

She therefore adjourned to April 22 for report of settlement or continuation of hearing in the of breakdown in the negotiation process.

News of Nigeria ( NAN) reports the appellant dragged the FIRS the tribunal over an allegation of error on assessments of his Withholding Tax (WHT), Personal Income Tax and Value Added Tax (VAT) for the period from 2010 to 2017.

Specifically, he expressed dissatisfaction with the decision to assess with respect to WHT and VAT in the sum of N 1. 2 billion.

The appellant claimed it was a misnomer for , who operated a law firm as a legal practitioner and did not deal in primary goods, to be assessed on Withholding Tax (WHT).

FIRS in its argument said that its assessments were not in error and that it was discovered that the appellant did not deduct and remit WHT on some of the expenses and payments made under the period in review.

The service, therefore, prayed the Tribunal to declare that the notices of assessments issued on the appellant for 2010 to 2017 assessment was right.

It also urged the tribunal for an order mandating the appellant to pay the total sum of N1.2 billion being the appellant’s liability for WHT, Personal income tax and VAT for 2010 to 2017 years of assessment.

FIRS stated that it rightly assessed the appellant; acting in accordance with the law and by collaborating with EFCC on non-declaration of income as well as tax evasion. (NAN)

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