The Benin- South South Zone of the Tax Appeal Tribunal has ordered Baklang Consultant Limited to pay Bayelsa State Board Of Internal Revenue the sum of N195,993,729.40 (One Hundred and Ninety-Five Million, Nine Hundred and Ninety-Three Thousand, Seven Hundred and Twenty Nine Naira, Forty Kobo only) inclusive of interest and penalties being the assessed tax liability for the years 2008 to 2013 in accordance with the relevant tax legislation.
The Panel led by Obehi Odiase-Alegimenlen held that the Bayelsa State Board of Internal Revenue has proved its case against Baklang Consultant Limited and is entitled to the reliefs sought in the interest of justice.
From facts, the Appellant- Bayelsa State Board of Internal Revenue had appealed to the Tax Appeal Tribunal over the failure of Baklang Consultant Limited’s failure to file and pay the assessed tax liability in respect of PAYE, Development Levy, and Bayelsa State Infrastructural Maintenance Levy on the grounds that unremitted taxes has become a debt owed by the firm to the Bayelsa State Government.
Consequently, the Bayelsa State Board of Internal Revenue sought an order directing the Baklang Consultant Limited to pay the revenue agency the assessed tax liability in accordance with the relevant tax legislations, and a declaration that the failure, refusal and/or neglect of the firm to deduct and remit its P.A.Y.E. of its staff are in breach of Sections 81 and 82 of the Personal Income Tax Act 2011 (as amended) amongst others.
In defense, the Respondent- Baklang Consultant Limited filed a preliminary objection and urged the Tribunal to strike out the Appeal for lack of jurisdiction. The Tribunal in its ruling dismissed the objection and affirmed jurisdiction.
The Baklang Consultant filed another Motion on Notice and sought the Tribunal to stay proceedings, and the tribunal refused the stay of Proceeding for lacking merit and ordered that Hearing Notice be served on the Respondent for the continuation of the hearing.
However, despite service of hearing notices on the Baklang Consultant, the firm failed and refused to defend the suit.
The learned counsel to the Bayelsa State Board of Internal Revenue urged the tribunal to grant the reliefs sought in the interest of justice.
In a well-considered judgment after careful evaluation of the evidence tendered, the tribunal led by Hon. Prof. Obehi Odiase-Alegimenlen as Chairman, Hon Dr. Ala-Peters David, Hon. Mrs. Hilda Ofure Ozoh, Hon. Barr. Ajoku Vitalis Friday and Hon. Prof. Olatunde Julius Otusanya as members held that the Bayelsa State Board of Internal Revenue has made out a case to be entitled to the judgment of the Tribunal.
The Panel held that Baklang Consultant Ltd is indebted to the Bayelsa State Board of Internal Revenue in the sum of N195,993,729.40 (One Hundred and Ninety-Five Million, Nine Hundred and Ninety-Three Thousand, Seven Hundred and Twenty Nine Naira, Forty Kobo only) being unremitted PAYE of its Staff, Development Levy and Bayelsa State Infrastructural Maintenance Levy in accordance with Section 1(b) and (d) of the First Schedule to Personal Income Tax Act (Amendment) 2011, Taxes and Levies (Approved List for Collection) Act and Bayelsa State Infrastructural Maintenance Levy Law 2003.
The Tribunal also ordered Baklang Consultant Ltd to file its tax returns with the Bayelsa State Board of Internal Revenue as prescribed by law.
See full judgment below
IN THE TAX APPEAL TRIBUNAL IN THE SOUTH-SOUTH ZONE HOLDEN AT BENIN
APPEAL NO: TAT/SSZ/007/2018
BETWEEN:
BAYELSA STATE BOARD OF INTERNAL REVENUE —— APPELLANT
AND
BAKLANG CONSULTANT LIMITED ———————- RESPONDENT
BEFORE: PROF OBEHI A ODIASE-ALEGIMENLEN CHAIRMAN DR DAVID ALA-PETERS COMMISSIONER MRS HILDA OFURE OZOH COMMISSIONER MR VITALIS FRIDAY AJOKU COMMISSIONER DR OLATUNDE JULIUS OTUSANYA COMMISSIONER
WEDNESDAY 8TH FEBRUARY 2023
JUDGEMENT This Appeal is brought before the Tax Appeal Tribunal (South-South Zone Sitting in Benin), dated and filed on 19th November 2018 in Suit No. TAT/SSZ/007/2018.
BRIEF FACTS The Appellant is a body corporate established by the Bayelsa State Board of Internal Revenue Law CAP B2 Laws of Bayelsa State, 2006 and is charged with the responsibility, amongst others, with the collection of all taxes, fees, levies and penalties due to the Government of Bayelsa State; and the administration of the relevant tax laws in Bayelsa State as provided for in the Personal Income Tax Act (PITA) 2011 (as Amended) while the Respondent is corporate body registered with the Corporate Affairs Commission that carries on the business of Labour and Manpower Supplies. The Appellant being dissatisfied with the Respondent’s failure/refusal to file and pay the assessed tax liability in the sum of N195,993,729.40 (One Hundred and Ninety Five Million, Nine Hundred and Ninety Three Thousand, Seven Hundred and Twenty Nine Naira, Forty Kobo only) in respect of PAYE, Development Levy, and Bayelsa State Infrastructural Maintenance Levy, to appealed to the Tax Appeal Tribunal, South South Zone upon the grounds set out as follows: The Respondent has failed, refused and/or neglected to file and pay its Pay-As-You-Earn taxes of its staff whose principal place of residence is in Bayelsa State, Development Levy and Bayelsa State Infrastructural Maintenance Levy (BIM).
Consequent upon the failure, an assessment of N195,993,729.40 (One Hundred and Ninety Five Million, Nine Hundred and Ninety Three Thousand, Seven Hundred and Twenty Nine Naira, Forty Kobo only) being unremitted taxes (PAYE, Development Levy and BIM) for the years 2008, 2009, 2010, 2011, 2012 and 2013 is outstanding and has become a debt owed by the Respondent to the Bayelsa State Government.
The Respondent has failed, refused and/or neglected to pay the assessed liabilities despite letters of notifications, demand notices, letter of invitation and report of administrative assessment based on back duty investigation.
Consequently, the Appellant sought the following reliefs from this Honorable Tribunal.
AN ORDER OF THIS TRIBUNAL that the Respondent is indebted to the Appellant in the sum of N195,993,729.40 (One Hundred and Ninety Five Million, Nine Hundred and Ninety Three Thousand, Seven Hundred and Twenty Nine Naira, Forty Kobo only) being unremitted PAYE of its Staff, Development Levy and Bayelsa State Infrastructural Maintenance Levy in accordance with Section 1(b) and (d) of the First Schedule to Personal Income Tax Act (Amendment) 2011, Taxes and Levies (Approved List for Collection) Act and Bayelsa State Infrastructural Maintenance Levy Law 2003. AN ORDER directing the Respondent to pay to the Appellant the sum of N195,993,729.40 (One Hundred and Ninety Five Million, Nine Hundred and Ninety Three Thousand, Seven Hundred and Twenty Nine Naira, Forty Kobo only) inclusive of interest and penalties being the assessed tax liability for the years, 2008, 2009, 2010, 2011, 2012 and 2013 due the Appellant in accordance with the relevant tax legislations. AN ORDER demanding the Respondent to file its tax returns with the Appellant as prescribed by law. A declaration that the Respondent is liable to file returns and remit its P.A.Y.E. liabilities in accordance with Sections 81(2) and 82 of the Personal Income Tax Act 2011 (as amended). A declaration that the failure, refusal and/or neglect of the Respondent to deduct and remit its P.A.Y.E. of its staff is in breach of Sections 81 and 82 of the Personal Income Tax Act 2011 (as amended). A declaration that the failure, refusal and/or neglect of the Respondent to file tax returns and/or pay its tax as at when due amounts to tax evasion punishable under section 94 of the Personal Income Tax Act (as amended). Cost of this action – N2, 000,000.00 (Two million naira) only. AND for such further order or other orders as this Honourable Tribunal may deem to make in the circumstance.
The Respondent upon the Service of the Notice of Appeal, filed a preliminary objection dated and filed on 3rd April 2019, urging the Tribunal to strike out the Appeal for lack of jurisdiction. The Ruling on the Preliminary objection was delivered on TUESDAY 8TH DECEMBER, 2020 wherein this Tribunal held that it is well clothed with jurisdiction to hear this matter. Consequently, The Respondent filed another Motion on Notice seeking the Tribunal to stay proceedings. On FRIDAY 26TH MARCH. 2021, this Tribunal delivered its Ruling refusing the stay of Proceeding and the matter was adjourned to Friday the 28th day of May 2021 for Hearing. The Tribunal also ordered Hearing Notice be served on the Respondent. The Appellant opened its case on TUESDAY 13TH JULY. 2021 by calling AW1-Omukoro Parode Ransom, its Technical Adviser who in support of its case, tendered Four (4) Exhibits, Exhibit BYS 1-4. The matter was then adjourned to the 9th of September 2021 for Cross Examination of AW1. On the said date, the Respondent was not in Tribunal to cross examine the Appellant witness and thus the Respondent was foreclosed from cross examination. The matter was then adjourned to 14th October, 2021 for defense. After several adjournments to enable the Respondent put up a defence, the Respondent was finally foreclosed from opening its defence on Thursday 23rd of June 2022 and the matter was adjourned to 8th August 2022 for adoption of Final Written Addresses. Appellant adopted its Final Written Address on 12th December 2022 and the matter was adjourned to 19th January 2022 for Judgement . however, the Tribunal did not sit in January due to the Tax Appeal Tribunal Retreat held in Abuja same month. Consequently, the matter was then schedule for today Wednesday 8th February, 2023 for Judgement.
ISSUES FOR DETERMINATION In its Final Written Address, Appellant Counsel I. M. Beinbein formulated three (3) issues for determination as follows: Whether the Respondent is liable to file tax returns with the Appellant, and where the Respondent fails, whether the Appellant can assess the Respondent as to its liabilities. Whether based on the facts before the Tribunal, the outstanding audit liability has not become final and conclusive. Whether the Appellant is entitled to the reliefs sought.
After listening to the Appellant sole witnesses in this matter and evaluating the evidence tendered, the Tribunal is of the view that only one issue calls for determination which is: Whether the Appellant in this matter has made out a case to be entitled to the judgment of this Tribunal.
DETERMINATION OF THE ISSUE
Whether the Appellant in this matter has made out a case to be entitled to the judgment of this Tribunal.
Judgment is not given in the favour of a Claimant just for the asking, A Court or Tribunal must be convinced that a Claimant in this case, the Appellant has made out a case to be entitled to its judgment. The Tribunal will not close its eyes to a matter that does not have merit merely because the Defendant in this context, the Respondent was absent or did not put up a defence at all.
The position of the law is that civil matters are proved on preponderance of evidence and balance of probabilities. See the cases of SEOGBEKUN V ADELAKUN (2013) All FWLR (PART 664)168 at 188 D-F and MR. OLUMIDE HENRY v. DEMMY GLOBAL RESOURCES LIMITED. LPELR-49972(CA).
It is also the position of the law that where a Claimant gives evidence in line with his/her/ and its claim and that piece of evidence was not challenged and/or contradicted by the defendant, the Court should enter judgment in favour of the Claimant. See the case of UNIVERSITY OF CALABAR VS. EPHRAIM (1993)1 NWLR (PT. 271) PAGE 551 RATIO 6 AT 556. It is also trite law that where a matter is undefended, as in this case, what is required is minimal proof for claimant to be entitled to judgment in its Favour. The endorsement in the Tribunal’s file shows that the Respondent in this matter was duly served severally and is aware of the pendency of same but chose not to defend the said suit.
Consequently, the lone issue in this matter is therefore resolved in favour of the Appellant as the Tribunal agrees that the Appellant has made out a case to be entitled to the judgment of this Tribunal. The Tribunal therefore grants the Appellant prayers and order as follows:
that the Respondent is indebted to the Appellant in the sum of N195,993,729.40 (One Hundred and Ninety Five Million, Nine Hundred and Ninety Three Thousand, Seven Hundred and Twenty Nine Naira, Forty Kobo only) being unremitted PAYE of its Staff, Development Levy and Bayelsa State Infrastructural Maintenance Levy in accordance with Section 1(b) and (d) of the First Schedule to Personal Income Tax Act (Amendment) 2011, Taxes and Levies (Approved List for Collection) Act and Bayelsa State Infrastructural Maintenance Levy Law 2003.
The Respondent is to pay the Appellant the sum of N195,993,729.40 (One Hundred and Ninety Five Million, Nine Hundred and Ninety Three Thousand, Seven Hundred and Twenty Nine Naira, Forty Kobo only) inclusive of interest and penalties being the assessed tax liability for the years, 2008, 2009, 2010, 2011, 2012 and 2013 due the Appellant in accordance with the relevant tax legislation.
Respondent should file its tax returns with the Appellant as prescribed by law. Prayer on cost of litigation is hereby refused.
Dated this _ 8th _ day of __ February 2023.
Signed:
Hon. Prof. Obehi Adetokunbo Odiase-Alegimenlen, Chairman
Hon Dr. Ala-Peters David Hon. Mrs. Hilda Ofure Ozoh, Member
Hon. Barr. Ajoku Vitalis Friday Hon. Prof. Olatunde Julius Otusanya, Member
REPRESENTATION: M. Beinbein Esq. – Appellant/Respondent
