Court of Appeal stops Rivers from collecting VAT pending the trial
The Court of Appeal, Abuja Division, on Friday, ruled that the Rivers Government, the Federal Inland Revenue Service, FIRS, and the Attorney-General of the Federation maintain status quo, pending the hearing and determination of applications before it in respect of the Valued Added Tax, VAT.
It could be recalled that the Federal High Court, Port Harcourt, had on August 9 declared that it was the Rivers Government and not FIRS that should collect VAT and Personal Income Tax in that state.
The three-man panel of Appeal Court justices led by Justice Hassan Tsammani ordered all parties to maintain the status quo and refrain from taking any action that would give effect to the judgment of the Federal High Court, Port Harcourt.
Justice Tsammani held that since all parties in the matter had submitted themselves before the court, it was proper and the law for the court to preserve the res (subject matter) from being rendered nugatory.
Consequently, the court held that parties should refrain from giving effect to the judgment of the trial court in Port Harcourt pending the hearing and determination of the application of the FIRS to stay execution of the trial court’s judgment.
Parties are also to maintain the status quo pending the hearing of an application by the Attorney-General of Lagos State to be joined as a party in the matter.
The Informant247 News Rivers
