The Propriety of the ‘Comply Before Complain Rules’: Wherein Lies the Fundamental Rights of the Taxpayers?

Description

ABSTRACT

The Propriety of the ‘Comply Before Complain Rules’: Wherein Lies the Fundamental Rights of the Taxpayers?

Ifeanyi Ujah*

The Nigerian Tax Regime has recently witnessed a flurry of rules and legislation which directly circumscribes the taxpayers’ fundamental right to access the Tax Appeal Tribunal and the courts to contest the assessment or determination of their tax liabilities by the Revenue Authority and the courts. This is a result of the introduction of the “obey before complain rules” found in the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act 2007 (FIRS Act), the Tax Appeal Tribunal (Procedure) Rules 2021 (TAT Rules), the Federal High Court of Nigeria (Federal Inland Revenue Service) Practice Directions 2021 (FHC-FIRS-PD) and the Federal High Court (Tax Appeal) Rules 2022 (FHC-TA Rules). This article examines the validity of their relevant provisions as well as their impacts on the rights of taxpayers to access to justice and concludes by stating that the provisions conflict with the parent tax statutes and the 1999 Constitution of the Federal Republic of Nigeria (as amended) (Constitution). Hence, they cannot fetter taxpayers’ fundamental rights to access justice.

Keywords: Constitution, Tax Appeal, Federal Inland Revenue Service, FIRS Act.

INTRODUCTION

Before now, the taxpayers in Nigeria have enjoyed unhindered access to the Tax Appeal Tribunal and the courts to contest the assessment or determination of their tax liabilities by the Revenue Authority and the courts. This fundamental right of taxpayers seems to have been circumscribed by the introduction of the “obey before complain rules” found in Paragraph 15 (7) of the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act 2007 (FIRS Act), Order III Rule 6 of the Tax Appeal Tribunal (Procedure)Rules 2021 (TAT Rules), Order V Rule 3 the Federal High Court of Nigeria (Federal Inland Revenue Service) Practice Directions 2021 (FHC-FIRSPD) and Order V Rule 1 Federal High Court (Tax Appeal) Rules 2022 (FHC-TA Rules). This article examines the validity of the new provisions as well as their impacts on the rights of taxpayers to access to justice and concludes by stating that the said provisions conflict with the parent tax statutes and the 1999 Constitution of the Federal Republic of Nigeria (as amended) (Constitution). Hence, they cannot fetter taxpayers’ fundamental rights to access justice. The article is divided into four parts. This introduction which is the first part is immediately followed by the second part which discusses the meaning of access to justice and its legal basis. The third part analyses the relevant provisions of the parent tax statutes and the provisions of the Fifth Schedule to the FIRS Act, TAT Rules, FHC-FRS-PD and FHC-TA Rules as well as their impacts on access to justice, while the last part is the conclusion.

* L L.B (UNN), BL(Nig), ACITN, AICMC. Legal Practitioner and Tax Consultant based in Lagos, Nigeria. Email:

if***********@gm***.com











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THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW Vol.13 No.3