Justice James Omotosho of the Federal High Court in Abuja declared certain sections of the Tax Appeal rules unconstitutional and without any legal effect.
The judgment on Thursday was centered on these provisions; Tribunal (Procedure) Rules (2021), the Federal High Court of Nigeria (Federal Inland Revenue Service) Practice Directions (2021), and the Federal High Court of Nigeria (Tax Appeals) Rules.
This is based on the grounds that these sections infringed upon the constitutionally provided right of appeal.
Background
Senior Advocate of Nigeria and former President of the Nigerian Bar Association (NBA), Joseph Daudu, SAN, filed a lawsuit against the federal government.
He challenged the law that required him to pay 50% of the N1.2 billion tax assessment before he could appeal.
Daudu argued that these provisions were unfair, unlawful, and violated the right to appeal.
Daudu sought the court’s declaration that these provisions are unconstitutional, null, and void.
Court’s Decision
In his judgment, Justice Omotosho emphasized that while the Minister had the authority to create rules for the conduct of appeals, he was not permitted to restrict the right to appeal of any appellant.
The judge stated, “The right to appeal is a constitutional right, and the 1st respondent cannot diminish this right through subsidiary legislation.”
He also pointed out that any law or subsidiary legislation contravening the Constitution must be declared void to the extent of its inconsistency.
“The challenged provisions favored the Federal Inland Revenue Service without considering the interests of a tax debtor.
“It effectively deprived a tax debtor of their right to appeal if they couldn’t afford to deposit the entire assessed sum,” he added.
The court, in accordance with Section 6(6)(b) of the Constitution, has the power to address issues between the government and individuals.
It will not permit an unjust provision to infringe on the constitutional rights of applicants.
Justice Omotosho concluded by striking down the provisions that substantially restricted the right of appeal for tax debtors like the applicant.
