The Court of Appeal sitting in Benin on Wednesday, 28th day of May, 2014 dismissed an appeal brought to it by the Independent Television and Radio (ITV/Radio) in respect of distraining order carried out by the Edo State Internal Revenue Service as a result of the judgment delivered by a Benin High Court presided over by His Lordship, Honourable Justice J. I. Acha, arising from the outstanding Tax liability owed by ITV/Radio to Edo State Government in Appeal No. CA/B/20/2013.
The Court before dismissing the action invited amicus curiae such as:
Paul Usoro (SAN)
Dr. Oladapo Olanipekun (SAN)
Ferdinand Orbih (SAN)
Ade Ipaye (Honourable Attorney General of Lagos State)
While the respective briefs of argument by the parties were also considered with Alfred Eghobamien (SAN) appearing on behalf of ITV/Radio and Ken Mozia (SAN), appearing for the Edo State Internal Revenue Service.
The Court with particular interest considered Section 104, Sub section 1 of the Personal Income Tax Act which states that:
Section 104
1. Without prejudice to any other power conferred on the relevant tax authority for the enforcement of payment of tax due from a taxable person that has been properly served with an assessment which has become final and conclusive and a demand notice has been served upon the person in accordance with the provisions of this part of this Act, or has been served upon the person, then, if payment of tax is not made within the time specified by the demand notice, the relevant tax authority may, in the prescribed form, for the purpose of enforcing payment of tax due:
a. distrain the taxpayer by his goods, other chattel, bond or other securities; or
b. distrain upon any land, premises or places in respect of which the taxpayer is the owner and, subject to the provisions of this section, recover the amount of tax due by sale of anything so distrained.
2. The authority to distrain under this section shall be in the form prescribed by the relevant tax authority.
3. For the purpose of levying any distress under this section, an officer duly authorized by the relevant tax authority shall apply to a Judge of a High Court sitting in Chambers, under oath for the issue of a warrant under this section.
4. The Judge may, on application made ex-parte, authorize such officer, referred to in sub-section (3) of this section, in writing to execute any warrant of distress and, if necessary, break open any building or place in daytime for the purpose of levying such distress and he may call to his assistance any police officer and it shall be the duty of any police officer when so required to aid and assist in the execution of any warrant of distress and in levying the distress
This judgment has put to rest the controversy surrounding the sealing off of the Appellant which is ITV/Radio and to further show and demonstrate the resolve and commitment of the Edo State Internal Revenue Service to collect taxes from all and sundry with the best approach within the provisions of the Law.
The Court by its ruling, validated not just the provisions of Section 104 of PITA, but also validated the processes the Internal Revenue Service employed in collection of taxes especially as it relates to ITV/Radio, Federal Airports Authority of Nigeria (FAAN) etc.
We use this opportunity to appreciate the Judiciary in its quest to bring justice to all, whether small or great and to laud its wisdom over this erudite and well delivered land mark judgment.