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Tax defaulters to pay 50% of disputed amount into court account

Tax defaulters who plan to institute legal cases against the Federal Inland Revenue Service (FIRS) now have to pay 50 per cent of the assessed amount in dispute into an interestyielding account of the Federal High Court before the court can hear such matters.


Executive Chairman, FIRS, Mr. Muhammad Nami, disclosed this on Friday, during a public  hearing organised by the House of Representatives Committee on Public Accounts investigating revenue leakages arising from tax waivers and incentives to foreign companies granted pioneer status.




According to Nami, the new rule is contained in a recent Practice Direction issued by the Chief Judge of the Federal High Court, Abuja, Justice John Terhemba Tsoho, under Order 57 rule 3 of the Federal High Court (Civil Procedure) Rules, 2019.


He also confirmed that the Practice Direction took effect from May 31, according to a statement issued by the Director, Communications and Liaison, FIRS, Dr Abdullahi Ismaila Ahmad.


Nami also stated that the Management of FIRS “has initiated a process for a Memorandum of Understanding (MoU) with critical stakeholders as far as information sharing and amendments to the relevant laws are concerned.”

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