Tax defaulters to pay 50% of disputed amount before court hearing - FIRS


The Federal Inland Revenue Service (FIRS) has said that tax defaulters who wish to drag the service to court would be mandated to pay 50% of the disputed amount to the Court’s account before hearing.

The Executive Chairman, FIRS, Mr Muhammad Nami disclosed this on Friday during a public hearing organised by the House of Representatives Committee on Public Accounts investigating revenue leakages arising from tax waivers and incentives to foreign companies granted pioneer status.

Nami noted that the development was contained in a recent Practice Direction issued by the Chief Judge of the Federal High Court, Abuja, Hon. Justice John Terhemba Tsoho, under Order 57 rule 3 of the Federal High Court (Civil Procedure) Rules, 2019.

He also revealed that the new directive took effect from May 31 2021.

“We have gotten several amendments to our tax laws which require companies operating in the Free Trade Zones to file tax returns on their operations to the FIRS”, he added.

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