The Federal Inland Revenue Service (FIRS) has sent a document to the House of Representatives seeking the establishment of a federal revenue court.
The FIRS stated that the proposed court would aid in the growth of revenue generation the current administration.
The bill also seeks to remove powers to adjudicate on tax matters from the federal high court.
Recently, the FIRS was served a restraining order by a federal high court in Port Harcourt from collecting value-added tax (VAT) in Rivers state.
Despite appealing the ruling, the FIRS is also lobbying lawmakers to add value-added tax (TAX) collection to the exclusive legislative list.
“The Federal Inland Revenue Service (FIRS) hereby proposes the insertion of Section 254G to 254L in the 1999 Constitution of the federal republic of Nigeria (FRN) to provide for the establishment of Federal Revenue Court (FRC), the appointment of chief judge (FRC), power to make rules for the proceedings of the (FRC) and the Appointment of judges of the (FRC), Exclusive Jurisdiction of (FRC) on Federal Tax Matters,” the proposed bill reads.
“The Federal Inland Revenue Service (FIRS) further proposes for the amendment of Section 251(1). (b) of the Constitution of FIN 1999 (Amended) by removing the exclusive jurisdiction of Federal High court only on anything connected or related to Federal tax matters since same would be vested on the proposed Federal Revenue Court.
“The FIRS, therefore, wishes to further request that the House of Representatives consider the request for the establishment of Federal Revenue Court for the reason stated above.”
The FIRS noted that the proposed revenue court can repeat the success story of the tax appeal tribunal (TAT), which had handled over 500 tax related cases since its inception in 2019 with values such as N75.8 billion between 2010—2016 and N381,013,087,914,25, $14,779,158.07, EUR – 585,511.00 GBP – 11,145.00, and ZAR 644,857.00 between 2018 and 2020.
It also stated that the new federal revenue court would be designed based on the Federal Revenue Court Decree No, 13, 1973, which was enacted during the military regime of Yakubu Gowon.
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“Historically, the Federal Revenue Court was established by the promulgation of the Federal Revenue Court Decree No, 13, 1973. However-, the enactment of Section 228(1) and 230(1) of the 1979 Constitution renamed the Revenue Court to Federal High Court, this was further replicated in the Federal High Court Decree (Amendment) 1991 Cap (60) LFN now referred to as Federal High Court (amended)- Act 2000 Cap F12 LFN revised edition 2010,” the proposal reads.
“This amended Section 7 of the Federal High Court Act, (1991); and conferred Exclusive Jurisdiction on the Federal-High Court in relation to tax matters amongst others.
“Section 228(1) and 230(1) was further re-enacted as Section 251. (1) (a) to (s) of the Constitution of FRN 1999.”
