BANYO TEMITAYO
THE United Bank for Africa Plc has won an appeal against the Anambra State Internal Revenue Service, seeking to nullify a N473,315,327 Withholding Tax remittance issued to it by the state government in 2018.
AIRS, in 2018, issued an assessment and demand notice to UBA, asking the bank to remit the N473.3million, as withholding tax remittance liability for 2015, 2016 and 2017.
UBA approached the Tax Appeal Tribunal in 2019 after it failed to make the AIRS amend the tax assessment.
The state tax agency had insisted that the bank must pay the said sum as it issued a refusal to amend assessment notice.
At the Tax Appeal Tribunal, UBA sought to invalidate the assessment for arbitrariness and lack of legal support, among other reliefs.
The bank also prayed the tribunal to set aside the demand and amendment refusal notices. It argued that it was not liable to deduct and remit the said amounts.
The Tax Tribunal panel, headed by Mr Chukwuemeka Eze, while delivering judgment on the appeal in Enugu, granted two out of UBA’s four prayers.
It, however, struck out a prayer for a ruling that the AIRS had no power to impose penalty and interest on the Withholding Tax remittance until the amounts became final and conclusive.
It also struck out an order directing the AIRS to review its demand notice and amendment refusal notice, saying it was not necessary.
