N242bn tax: Absence of witness stalls MTN’s suit against AGF

A suit filed by MTN Nigeria Communications Limited against the Attorney General of the Federation over N242bn and $1.3bn import duties and withholding tax assessments was on Wednesday stalled.

The suit which was billed to go on before a Federal High Court sitting in Lagos was stalled due to the absence of a witness of the AGF.

The communications company in the suit instituted by a writ had challenged the legality of the AGF’s assessment of import duties, withholding tax and value-added tax in the sums of N242bn and $1.3bn.

MTN, among other declaratory reliefs, sought a declaration that the AGF’s demand of the sums of N242bn and $1.3bn from MTN was premised on a process which was malicious, unreasonable and made on an incorrect legal basis.

However at Wednesday’s proceedings, counsel for the AGF, Tolu Mokolu, told the court that their witness had challenges being in court as he was held back in Abuja, adding that the lead counsel, Tijani Gazali was also held up in Abuja over the same witness.

On this grounds, he urged the court to grant an adjournment.

Responding, counsel for the communications company, Wole Olanipekun (SAN), said he was not opposing the request for an adjournment and would not also ask for cost, noting that such adjournment was a drawback to the suit.

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The presiding judge, Justice Chukwukekwu Aneke adjourned the case till October 29, 31 for trial.

MTN in the suit also sought for a declaratory relief that the purported revenue assets investigation allegedly carried out by the Federal Government on MTN between 2007 and 2017, and its decision conveyed through the office of the AGF in a letter dated August 20, 2018, violated the provisions of section 36 of the constitution.

It also sought a declaration that the AGF acted in excess of its powers, by purporting to direct through its service to demand payment of import duties on the importation of physical goods.

Among other reliefs sought by MTN is a declaration that the AGF acted illegally, by usurping the powers of the Federal Inland Revenue Service, to audit and demand remittance of withholding tax and value-added tax and declaration that the purported self-assessment exercise instituted by the AGF via its letter dated May 10, 2018, is unknown to law, null and void and of no effect whatsoever.

MTN also sought the court order vacating the AGF’s demand letter dated August 20, 2018, for the sums of N242bn and $1.3bn from it.

Also, the telecommunications company claimed N3bn in damages against the AGF.