Alex Enumah
Justice Ambrose Lewis-Allagoa of the Lagos Division of the Federal High Court has ordered the Federal Inland Revenue Service (FIRS), the Retail Council of Nigeria, National Association of Supermarket Operators and three others to maintain status quo in their tax dispute.
Justice Lewis-Allagoa, made the order while ruling in an ex parte application brought to that effect by the Retail Council of Nigeria and National Association of Supermarket Operators.
Affected by the status quo order are the FIRS, Softrusttechnologies Limited, the Minister of Finance, and the Attorney-General of the Federation, who are 1st to 4th defendants/respondents respectively.
Meanwhile, the judge in the ruling held that the status quo order should be interpreted to mean that the FIRS in the interim cannot gain access into the business premises or data of plaintiffs/applicants.
Also, “that an Order of this Honourable Court is granted directing parties to this suit to maintain status quo, the reference of which is to be construed or interpreted against the execution of (or effectuation of any steps towards) the 1st defendant’s threat to request or gain access into the plaintiffs’ members’ business premises and/or records, data or information stored or otherwise residing in computers or other electronic devices or implementation of Sections 26 (1) (e) of the Federal Inland Services (FIRS) Act 2007 (amended by Section 52 of the Finance 2020). pending the final determination of the appeal constituted at the Court of Appeal in Appeal No: CA/PH/282/202; between the Federal Inland Revenue Service (1# Defendant herein) and the Rivers State Government and/or resolution of all issues and questions touching on, bordering on the Court of Appeal in Appeal No: CA/PH/282/202; between the Federal inland Revenue Service (1st Defendant herein) and the Rivers State Government and/or resolution of all issues and questions touching on, bordering on ond/or relating to the constitutional issue of authority to impose, collect or administer Value Added Tax (VAT) in the various states of the Federation.”
The court further held that its order subsists pending the determination of the pending suit at the Court of Appeal between the FIRS and the Rivers State Government over Value Added Tax (VAT).
Justice lewis-Allagoa in his ruling ordered a stay in the hearing of all pending applications or processes filed or that may be filed in the suit, pending the determination of the suit between the FIRS and the Rivers State government.
While the Retail Council of Nigeria is the first plaintiff/applicant, the National Association of Supermarket Operators is the second plaintiff/applicant in the suit marked FHC/L/CS/1843/2021.
A copy of the enroll order of the Court dated May 4, showed that the motion exparte was moved by counsel to the plaintiffs, Mr. Rilwan Ayanbiyi, on March 22, 2022, and was granted on April 28, 2022.
Part of the enroll order read: “The court after careful consideration of the application and submission of counsels, it is hereby ordered as follows:
“An order is granted staying the hearing of all pending applications or processes filed or that may be filed and/or further proceedings of this suit… pending… the final determination of Appeal No: CA/PH/282/202; between the Federal Inland Revenue Service and the Rivers State Government and/or resolution of all issues and questions relating to the constitutional issue of authority to impose, collect or administer Value Added Tax (VAT) in the various states of the Federation.”
