Tax Tribunal orders firm to immediately pay FIRS N7m Unremitted Tax Assessment

The North West Zone of the Tax Appeal Tribunal holden at Kaduna has ordered the Panacea Pharmaceutical Chemist And General Enterprises to immediately pay Federal Inland Revenue Service the sum of N7,000,000.00 (Seven Million Naira) only plus penalty and interest at 10% per annum EACH on the unremitted Companies Income Tax until the sum is fully liquidated.


The Panel led by Hon. Umar Adamu held that the Federal Inland Revenue Service has proved its case to the satisfaction of the tribunal and the failure of the Panacea Pharmaceutical Chemist And General Enterprises to respond to the suit amounts to admission.

From facts, the Appellant- Federal Inland Revenue Service had expressed dissatisfaction of the failure and refusal of the Panacea Pharmaceutical Chemist to pay its Companies Income Tax for the 2016 to 2021 Years of Assessment, and urged the tribunal to grant the reliefs sought.

The Federal Inland Revenue Service averred that Panacea Pharmaceutical Chemist duly acknowledged the letter of notice of Judgment Assessment for the 2016 to 2021 Years of Assessment, requesting for the immediate settlement of the Tax Debt in the cumulative sum of ?7, 000, 000.00 (Seven Million Naira) only.

However, despite service processes of the Panacea Pharmaceutical Chemist through substituted means, it failed to file defence and never attended any of the sittings of the Tribunal upon been served the hearing notices

The Federal Inland Revenue Service maintained that the Tribunal having taken the evidence of its witness without any challenge or rebuttable from the Panacea Pharmaceutical Chemist, it is presumed that the Respondent had decided not to challenge or controvert the action of the Appellant, and it should be deemed to have been admitted.

In its well-considered judgment after careful evaluation of the evidence and submissions of both parties, the tribunal led by Hon. Umar Adamu as Chairman, Hon. Kabiru Dandago, Hon. Bayero Muhammad, Hon. Sameerah Gwandu and Hon. Ahmed Kumshe as members unanimously held that the Revenue Agency has proved its case as demanded by law and is therefore, entitled to all the Reliefs sought.

The Tribunal held that where a party places before a Court unchallenged, cogent and credible evidence in support of his claim, the Court is under a duty to grant the relief sought by the party.

The Tribunal reiterated that when an opportunity is given to a party to respond to a claim against him, he is expected to debunk the allegations leveled against him, and failure to respond will amount to admission.

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