The Federal Inland Revenue Services yesterday drags 5 local government councils from Katsina State before the North-West zonal office of the North-West Tax Appeal Tribunal sitting in Kaduna for refusal to pay Withholding Tax and Value Added Tax.
Speaking before the Tribunal, Counsel representing the FIRS Barr. Nasambo Mohammed and Barr. Raji Mukhtar said the 5 local government councils namely: Mani Batsari, Dutsi, Daura and Baure at various times collected tax and refused to remit same to the appropriate authority.
Barr. Nasambo Mohammed informed the Tribunal that FIRS is suing Mani local government for failure and refusal to pay withholding tax and value added tax for the years 2009 to 2011, in the cumulative total sum of N54,338,787.56.
“We’re also suing Batsari local government for failure of the local government to pay withholding tax and value added tax, between the years 2009 and 2011, with a total cumulative value of N18,803,573.60; while Dutsi local government is sued for failure to pay withholding tax and value added tax, between the years 2009 and 2011, with cumulative total value of N41,836,170.64.
“We also urge this honourable Tribunal to look at our matter between Daura local government for failure to pay withholding tax and value added tax, between the years 2009 and 2011, with a total cumulative value of N34,341,185.79 and Baure local government for failure to pay withholding tax and value added tax, between the years 2009 and 2011, with a total cumulative value of N70,847,781.65,” Barr. Mohammed said.
In his own plea, Counsel representing the 5 local government councils Barr. A. A. Ibrahim from Ministry of Justice, Katsina State asks the Tribunal for a period to negotiate out of court settlement with the Appellant.
The Chairman of the Tribunal, Bashir Abdullahi Albasu, adjourned the matter to October 15, 2014 for report of settlement.
In the same vein, Kauna Polytechnic and Ahmadu Bello University Zaria has opted for out of court settlement in the allege case of tax evasion amounting to over N2billion brought against them by the Kaduna State Government.
When the case came up before the Tribunal yesterday, Counsel representing Kaduna State Government, Barr. Imani Sampson said the two respondents have approached the appellant for an out of court settlement and talks is in an advanced state, and therefore asks for a day of report of settlement or continuation of hearing.
The Tribunal granted his request and adjourned the matter to October 15, 2014 and December 1, 2014 for the report of the two matters respectively.