UBA Plc Headquarters in Lagos

WHT: UBA wins N473m tax appeal against Anambra State Government

*A Tax Appeal Tribunal has granted reliefs sought by United Bank for Africa (UBA) Plc, asking that the Anambra State Internal Revenue Service did not have the power to impose penalty and interest on the Withholding Tax remittance

Emmanuel Akosile | ConsumerConnect

The United Bank for Africa (UBA) Plc has won the tax appeal against the Anambra State Internal Revenue Service (AiRS), in which the bank sought to nullify the N473, 315,327 Withholding Tax (WHT) remittance the state government had issued to the financial institution in 2018.

AiRS had issued assessment and demand notice on the UBA Plc, asking the bank to remit the amount as WHT remittance liability for 2015, 2016 and 2017 tax years, Vanguard report said.

The state tax agency equally refused to amend the tax assessment as demanded by the bank, but rather issued the bank a notice of refusal to amend the assessment, insisting that the bank paid the sum as it demanded.

However, dissatisfied with both the assessment and refusal to amend notice, UBA approached the Tax Appeal Tribunal in 2019 when it, among other reliefs, asked the tribunal to invalidate the assessment for arbitrariness and lack of legal support.

The bank also prayed the tribunal to set aside the demand and amendment refusal notices, arguing that it was not liable to deduct and remit to the amounts the tax set out therein.

Delivering judgment on the appeal in Enugu, the Tax Tribunal panel headed by Mr. Chukwuemeka Eze granted two out of the four prayers sought by the bank and struck out the two other reliefs which the tribunal said were not necessary, report stated.

The reliefs struck out by the Tribunal included a prayer asking that the AiRS did not have the power to impose penalty and interest on the WHT remittance, until the amounts became final and conclusive; and an order directing the Anambra State tax agency to review its demand notice and amendment refusal notice.

Kindly Share This Story