BREAKING: FIRS Vs Rivers State : Appeal Court Orders Lagos To Join VAT Collection Case

The Court of Appeal in Abuja has ordered that Lagos state government be joined as a respondent in the Value Added Tax matter between Rivers State and the Federal Inland Revenue Service (FIRS)

Justice Haruna Tsammani gave the judgement saying that Lagos has proven that it is an interested party in the matter.

Recall that M.J. Onigbanjo SAN, Attorney General of Lagos , argued that they should be joined because the issue affects the state.

He had said that his state was constitutionally empowered to collect VAT.

He further prayed the court to join Lagos in the VAT matter.

“My lord, it is not in dispute that Lagos, one of the federating states in Nigeria is entitled to collect VAT and that’s our interest.

“Even the appellant recognized our interest in their application for stay of execution and injunction pending appeal.

“The appellant Respondents have recognized that Lagos state has an interest in this matter.

“That been the case, it cannot now lie in the mouth of the appellant to say that Lagos state has no interest in this matter,” he said.

He also argued that the fact that the court made an order directing Lagos and Rivers to maintain the status quo was proof that it knows that it was an interested party in the development.

“I urge that our application be resolved in favor of Lagos,” he prayed.

On his part, I.A Adedipe SAN, counsel for the First Respondent/applicant, AG of Rivers State, urged the court to join Lagos in the case.

Meanwhile, Muhammadu A. Magaji SAN, counsel for FIRS, contended that Lagos has not shown how aggreived they are to join the matter.

“It’s on record that despite the order of the Appeal Court, Lagos state went ahead to pass VAT act.

“We urge your lordship to discountenance their application,” he added.

But on Thursday, the Justice said that Lagos has to be joined because a trial court in Rivers had found that all the states in Nigeria can collect VAT.

“It is not in doubt that Lagos is a federating state in Nigeria,” adding that its application therefore has “merit and is accordingly granted.”

He ordered that Lagos should be added as a third respondent in the appeal by Rivers.

“Further appeal in this matter will continue in Rivers State division of this court on October 7” he said while directing that the processes be served on Lagos AG.

Recall that following the legal controversy surrounding bids by Lagos and Rivers State governments to start collecting Value-Added Tax (VAT), the Appeal Court sitting in Abuja had ordered parties involved to maintain status quo.

The ruling was given following an appeal filed by the FIRS seeking a stay of execution on a High Court judgement empowering Rivers State to collect VAT.

The three-member panel of the court led by Haruna Tsammani ordered all parties in the matter to “refrain from taking any action to give effect to the judgement of the Rivers state high court.”