Following an action brought by the trustees of Laws and Rights Awareness Initiative against the Federal Inland Revenue Service (FIRS), challenging its power to provide commercial sponsorship or support to entertainment concerts and shows, the Abuja Division of the Federal High Court on Tuesday February 19, 2019 adjourned hearing to Monday, April 15, 2019.
Entering an appearance before Justice Binta Nyako on Tuesday, Counsel to FIRS, Thihwi Dauda, raised an objection to the court’s jurisdiction to entertain the action, on the ground that the Plaintiff lacks locus standi to bring the action as it is not a taxpayer, by virtue of being exempt from companies income tax.
The defendant also argued that its sponsorship of concerts and entertainment events is permissible under the law for the purposes of promoting the payment of taxes by taxpayers.
In the originating summons filed by the plaintiff’s counsel, Olumide Babalola and Mofesomo Tayo-Oyetibo, the group alleged that the FIRS has been sponsoring and supporting entertainment events and concerts, such as the Festival of Lights, Davido Live in Concert and King Coal in Concert, when it has no power to do so under the Federal Inland Revenue Service Act, as a result of which it has acted beyond the scope of its powers under the Act.
The plaintiff is asking the court for a declaration that it is ultra vires the FIRS and unlawful for it to defray any money towards the sponsorship or any other form of support howsoever called, of concerts, entertainment shows or any other event howsoever called, which are not stipulated as part of the statutory expenditure of the FIRS under section 16 of the Federal Inland Revenue Service Act.
It also seeks an Order of injunction restraining the FIRS from defraying any amount towards any event not mentioned in section 16 of the Act or any other Act of the National Assembly.
The case will be heard on April 15, 2019.
Theodora Kio-Lawson
