Tribunal orders firm to pay N6.7m tax to FIRS

Mr Kayode Sofola (SAN), Chairman of TAT, Lagos Division, gave the order while delivering a judgment in an appeal filed by the FIRS against the ICT company.

The sum covered the period of years 2000 to 2004 when the company failed to remit its taxes to the apex tax body.

The FIRS had through its counsel, Mrs B.H. Onyiyangi asked the tribunal to order the company to pay the total sum of N31.7 million as outstanding taxes and accruing interests.

The tax agency had in its assessment claimed that Mega Tech Software Ltd. had not remitted its taxes from Jan. 1996 to Dec. 2005.

However, the five-man tribunal led by Sofola in its judgment, faulted the assessment made by FIRS before the tribunal and ordered the company to pay only N6.7 million.

Sofola said:"The appellant (FIRS) has claimed the outstanding sum of N23.5 million as tax due from the respondent (Mega Tech) for the years 1996 to 1999.

"It has however failed to show any evidence before this tribunal any assessment that establishes this claim.

"The appellant's claim for N23.5 million is unsubstantiated and accordingly fails".

He also noted that the FIRS failed to tender its assessment for the year 2005 before the tribunal.

"Thus, out of the appellant's claim of N8.2 million, the appellant has only proved N6.7 million and we give judgment accordingly.

"We therefore order the respondent to pay the appellant the sum of  N6.7 million, representing a best of judgment assessment for the years 2000 to 20004", he said.