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AEDC’s vs FIRS: N5.3bn Tax Debt Case Stalls Due To Failure To Comply With Court Order

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Due to AEDC’s noncompliance with an Abuja Federal High Court ruling, the legal processes between the Federal Inland Revenue Service (FIRS) and the Abuja Electricity Distribution Company (AEDC) have come to a stop.

The court decision requires AEDC to settle N5,314,665,952 in Value Added Tax (VAT) and Withholding Tax (WHT) arrears spanning back to 2013. It was given in the context of a December 14, 2023, ruling rendered by the Tax Appeal Tribunal.

The motion was scheduled to be heard and moved today.  AEDC in suit no: FHC/ABJ/TA/01/24 had approached the court seeking “an order staying the execution and or enforcement, by whatever means (including garnishee proceedings), of the judgment of the Tax Appeal Tribunal, Abuja Zone (“Tribunal”) delivered on 14 December 2023 in  Abuja Electricity Distribution Plc v Federal Inland Revenue Service (Appeal No: TAT/ABJ/APP/330/2022) (“Judgment”‘) pending the hearing and determination of the appeal filed against the Judgment by the Applicant (“Appeal”).”

Read Also: Companies Earning Less Than N25 Million Exempted From Paying Tax, FIRS Official Says

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The electricity billing company had argued that compelling the applicant to pay the money will “jeopardize the supply of electricity to millions of consumers in Kogi State, Nasarawa State, Niger State and the Federal Capital Territory, Abuja.”

At the resumed sitting on Tuesday, the AEDC lawyer, Josephine Titi told Justice Inyang Ekwo that she has four pending applications and was ready to move the one dated March 8, 2024.

But the judge said the motion was not before him. The lawyer insisted that her motion was in the court’s file but later opted to give the court her copy of the motion, but the judge refused the oral application.

Ekwo said he had ordered “parties to conduct a search on their file in court and ensure that the process they will be moving on the next date is in their file” but the AEDC lawyer did not comply with it order.

“That was my order, but it appears you did not do that. I refuse your application, you should do what the court said you should do,” Ekwo said and shifted the matter to April 13, 2024, for motion.

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