The Tax Appeal Tribunal, North East Zone sitting in Bauchi State has dismissed an application of the Taraba State Board of Internal Revenue seeking to compel First bank Ltd to make security deposit in disputed tax matter.




The ruling was delivered by Chairman of the Tribunal, Prof Bagoni Bukar during the sitting of the court last week in Bauchi State.


According to the ruling, the Taraba State Board of Internal Revenue, by a motion on notice, prayed the court to make an order compelling FirstBank to pay an amount as security for the prosecution of its appeal.


The revenue agency argued that FirstBank Ltd ought to deposit an amount stated under the relevant provisions of the Federal Inland Revenue Service (Establishment) Act, 2007 which if not comply with, rob the tribunal of the necessary powers to hear the appeal.


It also argued that the appeal by FirstBank Ltd is frivolous, vexatious and an abuse of the appeal process unless a deposit as security is paid to the revenue agency’s account.


 

The revenue agency support its application with a 6-paragraph affidavit deposed to by Diana Maxwell a litigation Secretary in the Law Firm of Legisshade Advocates and consultants.


After listening to arguments and counter-arguements from counsels over the motion, Prof Bukar, in deciding the case said, “We have gone through the entire contents of the affidavit filed by the revenue agency and we did not find any fact establishing that it is expedient to require the appellant to pay an amount as security.


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“A holistic reading of the Schedule does not in our view entitle the tribunal to make an order for payment of security as a matter of course. Although, the tribunal has the power to order deposit of security for the prosecution of the appeal, however, the power to do so can only be exercised when sufficient materials are placed before it.


“The respondent/applicant has not placed before the tribunal sufficient materials and we do not under the circumstances consider it expedient to make the order for deposit of any sum as security for the prosecution of this appeal. The failure to deposit an amount for the prosecution of the appeal has not and cannot rob this tribunal of jurisdiction to hear this appeal.


“Accordingly, the respondents/applicants application is hereby dismissed”


Prof Bukar advised parties to take advantage of their right to appeal by approaching the federal high court if they are dissatisfied with the ruling.


“Any party dissatisfied with this judgment may with leave of the tribunal appeal against it on point(s) of law to the Federal High Court within thirty days from date of this ruling”


The tribunal, thereafter, adjourned sitting on the substantive case and 10 other cases before it to 22nd December.