CITN member petitions NBA over Finance Acts 2021, 2022

Member, Taxation Standards and Practice Monitoring Committee of Chartered Institute of Taxation of Nigeria (CITN), Francis Uzoma Ubani (FCTI), has petitioned the Nigerian Bar Association (NBA) over certain provisions of Finance Acts 2021, 2022.

In a copy made available to journalists, yesterday, he charged lawyers’ not give room to ‘brazen violation’ of the 1999 Constitution (as amended).

The letter reads: “Deposit Money Banks (DMBs) and financial institutions should henceforth stop remitting qualified chargeable stamp duties/ Electronic Money Transfer Levy (EMTL) accruable to the different federating states of the federation pursuant to Section 4 (2) of the Stamp Duties Act (as amended) to the FIRS (Federal Inland Revenue Service), instead should start henceforth to remit to the relevant tax authorities in the various federating states of the federation as applicable.”

“The different federating states of the federation have a duty to explore and track recovery of stamp duties/EMTL that accrue to both the Federal Government and state governments pursuant to Section 4 (1) and 4 (2) and Section 163 (a) and (b) of the 1999 Constitution (as amended) to recover unremitted stamp duties from banks and other companies in the various sectors of the economy.

“It is obvious that activities of the Federal Government through the FIRS, CBN (Central Bank of Nigeria) and DMBs, in the collection, remittance and distribution of stamp duties/EMTL, are shrouded with a lot to be desired, and call to question as to the motive behind the unwholesome actions of the Federal Government and its agencies, FIRS and CBN, in this regard.

“Section 4 (1) and 4 (2) of the Stamp Duties Act and Section 163 (a) and (b) of the 1999 Constitution (as amended) are very clear and unambiguous on taxing powers of the Federal and State Governments on issues of stamp duties and capital gains tax in Nigeria. Therefore, the unnecessary controversies surrounding stamp duties/EMTL are clearly caused by lack of transparency in the collection, remittance and distribution of stamp duties/EMTL on the part of the Federal Government and its agencies, FIRS and CBN, on how much stamp duties/EMTL that has been generated pursuant to Section 4 (1) and 4 (2) of the Stamp Duties Act.”

It went on: “We, therefore, urge all Federal Government institutions, DMBs and individuals involved, to be more transparent, observe and obey rule of law on stamp duties/EMTL, collection, recovery and distribution as enshrined in the relevant provisions of the 1999 Constitution (as amended) and Stamp Duties Act, 2004 (as amended) as when injustice becomes law, resistance becomes a duty.

“In the light of the very clear provisions of the 1999 Constitution (as amended) and Stamp Duties Act, it is obvious that the Federal Government, through the FIRS, has no constitutional right to demand and collect stamp duties pursuant to Section 4 (2) of the Stamp Duties. I believe that we have been able to set the record straight and hereby enjoin the Federal Government, through the FIRS, to desist from further usurping powers of the different federating states of the federation forthwith.”