AGF withdraws demand for MTN’s unpaid taxes, refers case to FIRS

Abubakar Malami
Enugu State

 Godwin Tsa Abuja
 The Attorney General of the Federation, Abubakar Malami (SAN), has withdrawn the demand for the unpaid duties and taxes by telecom giant, MTN Nigeria.

This is contained in a statement by the Special Assistant on Media and Public Relations to the AGF, Dr. Umar Gwandu.

Following the development, MTN said it will consequently follow due court process to withdrawal its legal action against the AGF and engage with the FIRS and Nigeria Custom Service on the issues.

The statement titled “Withdrawal of Demand by the Attorney General of the Federation and Minister of Justice (The AGF) for N242,244,452,212.97 and USD$1,283,610357.86 Alleged Revenue Indebtedness from MTN Nigeria Communications PLC (MTN Nigeria)” read: “MTN Nigeria is pleased to report that its legal counsel has received a letter dated 8th January 2020 from the Attorney General of the Federation and Minister of Justice formally withdrawing its demand for N242,244,452,212.97 and USD$1,283,610357.86 alleged revenue indebtedness.

“The letter confirmed that following careful review and due consultation with relevant statutory agencies, the AGF has decided to refer the mater to Federal Inland Revenue Services (FIRS) and Nigeria Customs Service (NCS) with a view to resolving contentious issues.

“MTN Nigeria will consequently follow due court process to withdrawal its legal action against the AGF and engage with the FIRS and NC on the issues. MTN Nigeria remains committed to conducting its business in accordance with applicable laws in Nigeria.”

The  letter of withdrawal  dated  January 8, 2020 addressed to MTN’s counsel, Messrs
Wole Olanipekun & Co further reads in part: “Having carefully and painstakingly reviewed
the correspondence reference and following due consultation with relevant statutory agencies,  the Office of the Honourable Attorney-General of the Federation and Minister of Justice has decided
to refer the matter under reference to Federal Inland Revenue Services and Nigeria Custom Services with a view to resolving contentious
issues.”
The letter further added that “you may wish to be informed and be guided for time being, pending the outcome of the interrogation of the
relevant statutory agencies”.
The Federal Inland Revenue and Nigerian Custom Services are the regulatory authorities vested with the powers of monitoring foreign exchange utilization and assessment of taxes among others as canvassed and contended by the parties in their respective submissions.
The development is in line with oversight functions of Customs and Excise Management Act and Federal Inland Revenue Service relating to monitoring foreign exchange utilization and prevention of illegal trade, in case of Customs, and assessment, collection and accounting
for tax and other revenues accruing to the Federal Government, as it relates to Federal Inland Revenue Service.
With this the Attorney-General of the Federation and Minister of Justice demonstrates unflinching commitment to the rule of law where
all statutory agencies will be allowed to independently work with a view to fulfilling their mandates and recourse to them in contentious
cases, as regulatory agencies of government on issues that border on their statutory mandate.

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Enugu State