The Constitutionality of the Administrative Penalties Under Sections 18 and 19 of the Finance Act 2023

Description

ABSTRACT

The Constitutionality of the Administrative Penalties Under Sections 18 and 19 of the Finance Act 2023

Ifeanyi Ujah*

Sections 18 and 19 of the Finance Act 2023 amended the provisions of sections 51, 52 and 53 of the Petroleum Profit Tax Act (PPTA)₁, and amongst other things prescribed administrative penalties for contravention of the provisions of the PPTA or the offences contained in the PPTA. This article examines the propriety of those administrative penalties from the lens of the provisions of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and concludes that these administrative penalties constitute a usurpation of the judicial powers of courts and a legislative infringement on the fundamental human rights to fair hearing.

Keywords: Finance Act 2023, administrative penalties, Constitution, Fair hearing.

INTRODUCTION

The recent Finance Act 2023 (FA3)₂ ushered in numerous fiscal changes in Nigeria. Just like previous Finance Acts, the FA3 amended several legislations.₃ In particular, sections 18 and 19 of the FA3 amended the provisions of sections 51, 52 and 53 of the Petroleum Profit Tax Act (PPTA) (as amended), and amongst other things prescribed administrative penalties for the violation of the provisions of the PPTA or the offences contained in the PPTA. This article examines the propriety of those administrative penalties within the purview of the provisions of the Constitution of the Federal Republic of Nigeria 1999 (as amended) (Constitution) and concludes that the new provisions for administrative penalties do not only encroach on the judicial powers of courts but they also constitute a legislative infringement on the fundamental human rights to a fair hearing. The article is divided into four parts. This introduction which is the first part is immediately followed by the second part which highlights the judicial powers of the Court and the fundamental right to a fair hearing. The third part analyses the provisions of sections 18 and 19 of the FA3 as well as their corresponding implications on the judicial powers of Courts and the fundamental right to fair hearing. The last part is the conclusion.

Judicial Powers of the Court and the Fundamental Right to Fair Hearing
Prefatorily, it is right to underscore the supremacy of the provisions of the Constitution. The Constitution is the grundnorm and fundamental law of the Land. The inescapable effect of the supremacy of the Constitution is the nullification of the provision of any statute or law that is inconsistent with the provision(s) of the Constitution.

* LL.B (UNN), BL (Nig), ACITN, AICMC. Associate, PUNUKA Attorneys & Solicitors Lagos, Nigeria.

1. The Petroleum Profit Tax Act, Cap P13 LFN 2004 was enacted with the objective of imposing tax upon the profits of winning petroleum in Nigeria, to provide for the assessment and collection thereof, and for the purpose connected therewith.
2. The Finance Act 2023 was made on 28 May 2023.
3. The Act amended 11 Legislations to wit: Capital Gains Tax (CGT) Act, Companies Income Tax (CIT) Act, Customs, Excise Tariff, Etc. (Consolidation) (CET) Act, Personal Income Tax (PIT) Act, Petroleum Profits Tax (PPT) Act, Stamp Duties (SD) Act, Value Added Tax (VAT) Act, Tertiary Education Trust Fund (Establishment, etc) Act, Corrupt Practices and Other Related Offences Act, Public Procurement Act, and the Ministry of Finance Incorporated Act

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW Vol.14 No.3