Gov Dickson – Tribunal strikes out Taraba revenue agency’s application seeking security deposit payment from First Bank
The Tax Appeal Tribunal, North East Zone, has struck out an application filed by the Taraba State government seeking to compel First Bank Plc. to make a “security deposit” in respect to a dispute on tax matter between the bank and the state government.
Delivering ruling in the case at the tribunal’s sitting in Bauchi, the Chairman of the tribunal, Prof Bagoni Bukar struck out the application brought by the Taraba State Board of Internal Revenue.
Prof Bukar 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.
“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.
“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.”
Bukar advised parties to take advantage of their right to appeal by approaching the Federal High Court if they were disatisfied with the ruling.
The revenue agency had earlier in its submission averred that the bank ought to deposit an amount for security under the relevant provisions of the Federal Inland Revenue Service (Establishment) Act, 2007 which if not complied with would rob the tribunal of the necessary powers to hear the appeal.
According to the agency, the appeal by the bank was “frivolous, vexatious and an abuse of the appeal process unless a deposit as security is paid to the revenue agency’s account.”
It supported its application with a 6-paragraph affidavit deposed to by Diana Maxwell a litigation Secretary in the Law Firm of Legisshade Advocates and consultants.
The tribunal adjourned sitting on the substantive case until Dec. 22, 2021.
