Century Exploration & Production Ltd is ordered by the Tax Tribunal to pay N264 million in tax liability to the Bayelsa Revenue Board

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The Benin-South South Zone of the Tax Appeal Tribunal on 24 March 2023 ordered Century Exploration & Production Ltd to pay the Bayelsa State Board of Internal Revenue the amount of N264,000,000.00 (Two Hundred and Sixty-Four Million Naira only), inclusive of interest and penalties, which represents the assessed tax liability for the years 2011 to 2018 in accordance with the relevant tax laws. The tribunal also held that it is well suited to hear the matter as it relates to claims for back taxes.


BRIEF OF THE CASE

Century Exploration & Production Ltd was accused by the Bayelsa State Board of Internal Revenue of failing to submit returns and pay PAYE taxes, development levy, and BIM levy on behalf of its Bayelsa State employees from 2011 to 2018.As a result, the Appellant issued a BOJ assessment of NGN264,000,000 to the Respondent for the aforementioned taxes and levies for the relevant tax years.
The Bayelsa State Board of Internal Revenue filed an appeal with the TAT on April 20, 2021, requesting the following reliefs after the Company failed to pay the administrative assessment despite numerous notifications, demand notices, and letters of invitation.

(a) AN ORDER OF THIS TRIBUNAL that the Respondent is indebted to the Appellant in the sum of N264,000,000.00 (Two Hundred and Sixty Four Million Naira 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.

(b)AN ORDER directing the Respondent to pay to the Appellant the sum of N264,000,000.00 (Two Hundred and Sixty Four Million Naira only) inclusive of interest and penalties being the assessed tax liability for the years, 2011 to 2018 due the Appellant in accordance with the relevant tax legislations.

(c) AN ORDER demanding the Respondent to file its tax returns with the Appellant as prescribed by law.

(d)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).

(e) 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).

(f)  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).

(g) Cost of this action – N1,000,000.00 (Two million naira) only.

(h) AND for such further order or other orders as this Honourable Tribunal may deem fit to make in the circumstance


ISSUES FOR DETERMINATION

Appellant

1 Whether this Honorable Tribunal has jurisdiction to hear and determine issues relating to the claims for Bayelsa State Infrastructural Maintenance Levy and   Development Levy.

2 Whether from the totality of evidence (oral or documentary) the appellant has discharged the burden of   proof that the administrative assessment made by the  appellant on the Respondent P.A.Y.E withholding Taxes and other taxies based on  the  volume of its economic operations in Bayelsa State were done arbitrarily

Respondent

1 Whether this Honorable Tribunal has Jurisdiction To hear and determine Issues relating To Claims for Bayelsa State Infrastructural Maintenance Levy And Development Levy?

2 Whether the Appellant has proved Its Case as required by Law To be entitled to the  reliefs Sought?

After listening to the witnesses in this matter and evaluating the evidence tendered and arguments canvassed by their Counsels, the Tribunal adopts the two issues formulated by the Respondent as the Issues that calls for determination.

1 Whether this Honorable Tribunal has Jurisdiction To hear and determine Issues relating To Claims for Bayelsa State Infrastructural Maintenance Levy And   Development Levy?

2 Whether the Appellant has proved Its Case as required by Law To be entitled to the reliefs Sought.

JUDGEMENT
1. The Tribunal has full authority to consider this case because it involves claims for Bayelsa State Infrastructural Maintenance Levy and Development Levy, as well as the operation of the complete Personal Income Tax Act (PITA) 2011 (as amended).


2. That the Respondent pay the Appellant the assessed tax liability for the years 2011 to 2018 owed the Appellant in compliance with the applicable tax laws, which is N264,000,000.00 (Two Hundred and Sixty-Four Million Naira only) inclusive of interest and penalties.