Witness absence stalls trial in MTN’s $1.3bn tax assessment suit
Peter Fowoyo, Lagos
Hearing in a suit filed by MTN Nigeria Communication Limited against the attorney-general of the federation over N242 billion and $1.3 billion import duties and withholding tax assessment has been adjourned by a Federal High Court, Ikoyi, Lagos.
Justice Chukwukekwu Aneke adjourned the case till October 29 and 31 for trial.
MTN had instituted the suit through a writ dated September 10, 2018, challenging the legality of the attorney-general’s assessment of its import duties, withholding tax and value added tax amounting to N242 billion and $1.3 billion respectively.
The suit which was earlier fixed for trial could not proceed on Wednesday, following the absence of a prosecution witness.
When the case was called, Wole Olanipekun (SAN) announced appearance for the plaintiff, while T.A Mokolu and T. Adesanya appeared for the federal government.
Chief Olanipekun (SAN) told the court that he was not opposed to the request for an adjournment and would not also ask for cost, but noted that such adjournment was a drawback to the suit.
The plaintiff is seeking among other declaratory reliefs, a declaration that the attorney-general’s demand of N242 billion and $1.3 billion respectively, from MTN is premised on a process which is malicious, unreasonable and made on incorrect legal basis.
Meanwhile, in a preliminary objection challenging the suit, the attorney-general of the federation argued that the plaintiff’s action is statute barred having been filed out of time.
It argued that in seeking redress to the subject matter, the plaintiff had just three months from the date the cause of action arose to institute the action, adding that same was filed out of lawfully stipulated time.
The attorney-general of the federation urged the court to dismiss the plaintiff’s suit as being caught up by the statute of limitation, which forbids the court of jurisdiction.
But, Justice Aneke had in a ruling delivered on May 7, dismissed the preliminary objection in its entirety on the grounds that the case was not statute barred.
In its writ of summons, MTN is seeking declaratory relief on the following grounds, that the purported revenue assets investigation allegedly carried out by the federal government for the period of 2007–2017 and its decision conveyed through the office of the attorney-general by a letter dated August 20, 2018, violates the provisions of Section 36 of the constitution.
A declaration that the attorney-general acted in excess of its powers by purporting to direct through its letter of May 10, 2018, 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 attorney-general acted illegally by usurping the powers of the Federal Inland Revenue Service to audit and demand remittance of withholding tax and value added tax and a declaration that the purported assessment exercise ordered by the attorney-general is unknown to law, null and void, and of no effect whatsoever.
