The Federal High Court in Lagos on Tuesday adjourned the case of MTN Nigeria against the Attorney General of the Federation (AGF) to January 30 and 31, 2020.
MTN, Nigeria’s largest telecommunications operator, filed a suit against the AGF over alleged $1.3 billion (N242 billion) import duties and withholding tax assessments. The telecommunications company is challenging the legality of the AGF’s assessment of its import duties, withholding tax and value added tax in the sums of $1.3 billion and its authority to deal with issues around tax and customs duties.
When the case was called by Justice Chukwujekwu Aneke on Tuesday, Wole Olanipekun (SAN) appeared for MTN (the prosecutor) while T. A. Gazali, chief state counsel, Federal Ministry of Justice, appeared for the AGF (the defendant).
Olanipekun informed the court that he and his client were ready to proceed with the trial but had been informed by the respondent that more time would be needed to further study the case and wrap up evidence. Gazali had also informed the prosecuting counsel that “he would not be able to proceed with this case at this time, as he is representing the government in another matter”, Olanipekun said. Hence a mutual agreement was made for the end of January 2020.
“In a motion dated 23 September 2019 and filed on 25 September 2019, we asked for an extension of time to regularise processes and wrap up this case,” Gazali told the court.
“We are trying to micromanage time. We are ready for this case but we understand the reasons why the respondent may require some more time, so we have agreed on a convenient date. We served him yesterday, October 28, and he said he wants to go through,” the plaintiff said.
The telecommunications company resorted to taking legal action after receiving a demand notice from the AGF alleging unpaid duties and taxes between 2007 and 2017.
According to the law of the Federal Republic of Nigeria, oversight for this is the responsibility of the Federal Inland Revenue Service (FIRS) and Nigerian Customs Service (NCS) and not the Attorney General’s office.
The court heard arguments on the AGF’s preliminary objection on March 26, 2019. At the time, the AGF requested that MTN’s suit be dismissed because it was not filed within the appropriate timeframe, which the AGF asserted was within three months of receipt of the initial request for a self-assessment. Having considered the matter, the judge determined that MTN’s suit was not statute-barred, as the company was only required to file its case within three months of receipt of the actual demand notice, which it did.
MTN Nigeria maintains its stand of being in full compliance with all extant tax and regulatory obligations. The company says that since incorporation in 2001, it has invested more than N2 trillion into the Nigerian economy and has paid more than N1.7 trillion in taxes, levies and other regulatory fees.
“It is important to note that even if the court ultimately rules that the AGF is within its rights to assess taxes and duties, it does not imply that the assessment that has been made is legitimate,” the company said in a statement sent to BusinessDay.
The company which suffered reduced share prices as a result of the accusations, in September 2018, applied in the Federal High Court of Nigeria for injunctive relief restraining the AGF from taking further action in respect of their orders that the $1.3 billion in relation to the taxes be paid to the Federal Government of Nigeria.
JUMOKE AKIYODE-LAWANSON
