FIRS insists on collecting VAT pending final judgement

The Federal Inland Revenue Service has urged taxpayers not to panic over the recent court ruling in Port Harcourt, which dismissed its motion for stay of execution of the judgment that Rivers State can collect Value Added Taxes from its residents.

It stated that “until the Court of Appeal or even the Supreme Court determines the matter, taxpayers are required to continue to comply with their Value Added Tax (VAT) obligations within the status quo framework.”

This is contained in a statement by Johannes Oluwatobi Wojuola, Special Assistant on Media and Communication to the FIRS executive chairman.

It stated, “The FIRS having lodged in the Court of Appeal, both an appeal against the decision of the Federal High Court sitting in Rivers State in Suit No. FHC/PH/CS/149/2020, Attorney General of Rivers State Vs Federal Inland Revenue Service, and an injunction pending appeal of the said judgement, assures taxpayers that there is no cause for alarm.

“The Federal High Court ruling should not breed any confusion as to the obligations of taxpayers. Taxpayers must continue to comply with the Value Added Tax Act pending the final determination of appeal.

“Taxpayers must continue to honour their tax obligations under the VAT Act. Failure to do this would put them on a collision course with the law.”

It also stated that records of appeal had been transmitted to the appellate court, adding that the agency was confident that it would earn a favoured judgment at the appellate court.