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VAT BATTLE: Fed Govt directs firms to pay VAT to FIRS

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FG APPEAL CASE

 

With the deadline for remittance of the Value Added Tax (VAT) for the month of August billed to expire today, the Federal Government has directed companies to pay to the Federal Inland Revenue Service (FIRS).

The FG said the decision would comply with the order by the Court of Appeal for a status quo antebellum.

Attorney-General of the Federation and Minister of Justice Abubakar Malami (SAN) clarified that the status quo referred to the state of affairs before parties went to court.

Besides, he emphasised that FIRS remained the statutory VAT collecting authority, not states.

The AGF’s spokesman, Dr Umar Gwandu, responding to an enquiry by our correspondent, said: “As far as the Federal Government is concerned, the status quo ordered to be maintained by the court is a position prior to the submission to the jurisdiction of the court which in effect means the FIRS remains the recognised revenue collector of the VAT in the country.”

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The tax-collecting agency also urged companies not to panic or be confused and remit “their returns to the FIRS”.

A highly placed official of the FIRS, who pleaded not to be named, said: “The Appeal Court ruling is in our favour.”

Echoing the AGF, he said the order to “maintain status quo antebellum” supersedes FIRS’ previous statement calling for “the continuation of the status quo”.

The FIRS official warned that “states will be in breach of the Appeal Court ruling if they clamp down on companies that remit their VATs to the FIRS”.

He added: “Any company that is put in such a position has every right to sue the state.

“There are lots of options in that they can sue. You can’t shut down a legitimate business because it does not pay tax to you, that law at the moment does not exist.

“As far as the law is concerned, the status quo that existed before the judgment was made is the existing law. What is that law? That all VAT should be paid to the Federal Government”.

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The Nigeria Employers Consultative Association (NECA) directed its members to make their VAT remittances for August to the Federal Inland Revenue Service (FIRS).

NECA is a trade union of employers in the private sector.

The association, in a statement by its Director-General, Timothy Olawale, said: “All VAT collected for August 2021 should be remitted to the FIRS based on the Order of the Court of Appeal.”

The Lagos Chamber of Commerce and Industry (LCCI) said businesses were still confused as to who was in charge of VAT.

Its Director-General, Dr Chinyere Almona, in a statement, said the situation was not healthy for the business community and planning.

She believes businesses should not be made to pay VAT twice to different agencies.

On Sunday, the Organised Private Sector of Nigeria (OPSN) expressed their worries over how to pay the VAT and to who.

Its chairman, Taiwo Adeniyi, urged the Federal Government to clarify the “confusion”.

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FULL LIST: Multichoice increases DStv, GOtv subscription

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Broadcasting company Multichoice has jacked up the prices of its offerings in Nigeria four months after its last increment.

 

The company reviewed prices in its packages across the board. The new prices will take effect from May 1, 2024.

 

With the latest price hike, the DStv Premium package increased from N29,500 to N37,000. Similarly, the DStv Compact+ went up from N19,800 to N25,000 while the Compact package increased from N12,500 to N15,700.

The Comfam package moved from N7,400 to N9,300. Yanga package moved up from 4,200 to N5,100 while Padi package increased from N2,950 to N3,600. HDPVR was increased from N4,000 to N5,000, the Access Fees package from N4,000 to N5,000, and XtraView moved from N4,000 to N5,000.

 

Meanwhile, the Gotv Supa+ package moved from N12,500 to N15,700, Supa package from N7,600 to N9,600, and Max package from N5,700 to N7,200.

 

While the Jolli package was jacked up from N3,950 to N4,850, the Jinja package moved from N2,700 to N3,300, and Smallie package from N1,300 to N1,575.

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It will be recalled that the company implemented an upward review of prices in December 2023, days after announcing a $72m loss in its financial statement for the third quarter of the year.

 

Checks on the company’s reviewed price list then showed a 20 per cent per cent hike in the company’s packages across the board.

 

 

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NCAA grounds all Dana Air operations

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The Nigerian Civil Aviation Authority (NCAA) has been directed by Festus Keyamo, the minister of aviation, to suspend the operations of Dana Air, TheCable understands.

 

The directive followed the incident involving a Dana Air plane at Lagos airport on April 23, which veered off the Lagos airport runway.

 

This forced aviation authorities to divert flights from the local airport to the international terminal.

 

In a letter to the NCAA director general dated April 24, signed by Emmanuel Meribole, permanent secretary, ministry of aviation, and seen by TheCable, the ministry said Keyamo’s attention has been drawn to the “serious concerns” that followed the incident.

 

The ministry said the incident has raised concerns regarding both the safety and financial viability of Dana Air operations.

 

“In light of these incidents and with the paramount priority being the safety and well-being of our citizens and travelers, the Honourable Minister has directed that you immediately initiate the suspension of Dana Airline’s fleet until a comprehensive audit can be conducted. This audit should encompass all aspects of safety protocols, maintenance procedures, and financial health to ensure full compliance with our aviation regulations,” the ministry said.

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“The recent incidents have underscored the urgency of this matter, and it is imperative that swift and decisive action be taken to safeguard the interests of all stakeholders involved. I trust in your expertise and diligence in carrying out this audit thoroughly and expeditiously.”

 

On April 23, Dana Air said all 83 passengers and crew onboard the flight disembarked safely without injuries or scare.

 

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Yahaya Bello took $720k from state coffers to pay his child’s school fees – Olukoyede

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The chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, says Yahaya Bello, former governor of Kogi, withdrew $720,000 from the state’s coffers to pay his child’s school fee in advance.

 

Olukoyede spoke in Abuja on Tuesday during an interactive session with media executives.

 

The EFCC boss alleged that the former Kogi governor transferred money from the state coffers to a bureau de change operator, and used the money for his child’s school fee in advance.

 

Olukoyede added that Bello made the payment in anticipation that his tenure was gradually coming to an end.

 

“A sitting governor, because he knew he was leaving office, moved money directly from the government to bureau de change and used it to pay his child’s school fee in advance,” the EFCC boss said.

 

“Over $720,000 in anticipation that he was going to leave the government house. In a poor state like Kogi, you want me to close my eyes under the guise of ‘I’m being used’. Used by who? At this stage of my life.”

READ  Umahi throws weight behind FG, FIRS, not states should collect VAT

 

Olukoyede said he inherited the case file of the former Kogi governor, noting that he did not initiate the investigation against Bello.

 

On April 17, EFCC operatives laid siege on Bello’s residence in Abuja to arrest him over alleged N80 billion fraud.

 

While the EFCC operatives were at Bello’s residence, Usman Ododo, governor of Kogi, came to visit his predecessor.

 

Shortly after Ododo departed from the residence, the EFCC operatives also left the house.

 

Bello was reportedly rescued by Ododo when he departed his residence located in the Wuse Zone 4 district of Abuja.

 

Subsequently, the anti-graft agency declared the former governor wanted.

 

The Nigeria Immigration Service (NIS) has also placed Bello on a watchlist.

 

The anti-graft agency alleged that Bello, alongside Alli Bello, chief of staff to Ododo; and one Daudu Suleiman, diverted about N80.2 billion belonging to the Kogi government.

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