The Tax Appeal Tribunal (TAT) in Abuja on Tuesday ordered Oando Plc to pay N72.92 million as tax liabilities to the Federal Inland Revenue Service (FIRS).
Mr Nnamdi Ibegbu (SAN), the Acting Chairman of the Tribunal gave the order following an appeal filed by Oando challenging the FIRS’s refusal to amend its tax assessment for the year 2003.
The judgment is expected to bring to a close the seven-year legal tussle between the multinational company and the FIRS.
Ibegbu also awarded N100,000 against Oando as cost of the appeal decided in favour of FIRS.
Oando had in March 2003 sued FIRS before the Tax Appeal Tribunal for refusing to amend its assessment on additional income tax and education tax for the year 2003 amounting to N72,912, 838.
The relief sought by Oando to quash the assessment served on it by the FIRS in respect of interest disallowed for the assessment was dismissed by the tribunal.
It also dismissed the appellant’s prayer seeking an order to prohibit the respondent from assessing the appellant to any further tax assessment for the year 2003 in relation to interests and similar charges.
In the judgment, the Tax Appeal Tribunal upheld FIRS’s assessment and ordered Oando to pay N72, 912,838 as tax.
“The tribunal holds that the case of the appellant failed and the relief sought by the appellant in this appeal are hereby dismissed,’’ Ibegbu said.
The tribunal, therefore, ordered that “the appellant is not discharged of the assessment of tax served on it by the respondent in respect of interests the respondent disallowed as deductable for 2003 year of assessment.’’
It also granted an order that the respondent is not prohibited from assessing the appellant to any further tax in 2003 year of assessment in relation to interest and similar charges.
The tribunal, therefore, directed that “the appellant shall pay tax as assessed by the respondent which is the sum of N72,912,838’’. (NAN)