{"id":76717,"date":"2021-08-30T18:26:03","date_gmt":"2021-08-30T17:26:03","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=76717"},"modified":"2021-08-30T18:26:03","modified_gmt":"2021-08-30T17:26:03","slug":"we-will-continue-to-collect-vat-until-appeal-court-decides-on-legal-dispute-firs-tells-lagos","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2021\/08\/30\/we-will-continue-to-collect-vat-until-appeal-court-decides-on-legal-dispute-firs-tells-lagos\/","title":{"rendered":"We will continue to collect VAT until appeal court decides on legal dispute, FIRS tells Lagos"},"content":{"rendered":"<p>The Federal Inland Revenue Service (FIRS) has disclosed that it will contiue to collect Value Added Tax (VAT) from businesses operating in th country.<\/p>\n<p>This was contained in a letter dated August 24 which was addressed to the attorney general and commissioner for justice in Lagos state by the executive chairman of FIRS, Muhammed Nami.<\/p>\n<p><span data-preserver-spaces=\"true\">The Lagos state government had directed the FIRS to stop issuing demand notices for payment of VAT in the state and to render accounts, within seven days, of all sums collected as VAT in the current accounting circle in the state.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The state government premised its demands on the decision of the federal high court in Port Harcourt, Rivers state.<\/span><\/p>\n<p>Recall that the court had issued an order restraining<span data-preserver-spaces=\"true\">\u00a0FIRS from collecting VAT and Personal Income Tax (PIT) in the state.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The landmark judgement also implies that other state governments can follow and collect <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/08\/29\/pastor-enenche-slams-critics-as-he-reacts-to-pastor-bakares-comment-on-bishop-oyedepo-and-private-jets\/\">VAT<\/a> in their jurisdictions.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But the FIRS had announced that the court ruling has been appealed.<\/span><\/p>\n<p>FIRS added that<span data-preserver-spaces=\"true\">\u00a0it has also filed a stay of execution and advised the public to maintain a status-quo on the payment of the taxes.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In the letter addressed to the Lagos commissioner, Nami said since the Rivers court decision has been appealed, \u201cthe law does not allow a party to a suit to carry out an action to forestall the decision of the appellate court once an appeal has been entered\u201d.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It added that there were contrary rulings by similar courts on the same matter.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">FIRS added that parties must maintain the status quo until the decision of the appeal court.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe instant judgement of the Federal High Court, Rivers State, is in conflict with the extant judgement of the Federal High Court, <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/08\/27\/bello-narrates-how-political-will-common-sense-helped-in-curbing-covid-in-kogi-state\/\">Kogi State<\/a> on the same subject matter i.e. the validity of VAT Act as administered by the Service,\u201d the letter reads.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe conflict created by the later judgement can only be resolved by the appellate court; and the right of the appellate court in this wise should not be compromised.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cIn view of the foregoing, parties have to maintain the status quo ante (i.e. their positions before the instant judgement of the Federal High Court, Rivers State).<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe FIRS shall continue to collect VAT and administer the VAT Act until the final resolution of the legal dispute by the relevant appellate court.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Inland Revenue Service (FIRS) has disclosed that it will contiue to collect Value Added Tax (VAT) from businesses operating in th country. This was contained in a letter dated August 24 which was addressed to the attorney general and commissioner for justice in Lagos state by the executive chairman of FIRS, Muhammed Nami. [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":55922,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[1180,338,10086,16888,15406],"class_list":["post-76717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-firs","tag-lagos-state","tag-muhammad-nami","tag-personal-income-tax","tag-vat"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>We will continue to collect VAT until appeal court decides on legal dispute, FIRS tells Lagos<\/title>\n<meta name=\"description\" content=\"The Federal Inland Revenue Service (FIRS) has disclosed that it will 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