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Exclusive: VAT Controversy: FG Plots To Move Case File To Abuja

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Following the landmark decision by Justice Stephen Pam of the Federal High Court sitting in Port Harcourt to throw out the stay of execution suit brought before the honourable court by the Federal Internal Revenue Service(FIRS), The Boss can exclusively reveal that plans are being made to move the case file from Port Harcourt to Abuja, the nation’s capital.

We are told that there is panic in the seat of power following the order of court that granting the request of the FIRS was akin to committing murder and the fact that Lagos State which is the largest contributor to the Value Added Tax (VAT) pool is already on the verge of passing a new law like Rivers State to start VAT Collection.

The Boss learnt from very reliable sources that though the FIRS has kept insisting on its legal right to collect the said tax and actually held a press conference today after losing the suit against the Rivers State Government, panic-stricken top functionaries of  the federal government are designing plans to frustrate the implementation of the judgment because it will not only lead to serious revenue shortfall but throw FG’s financial projections overboard.

It will be recalled that on August 9, 2021 the Federal High Court sitting in Port Harcourt had declared that it is the Rivers State Government and not the Federal Inland Revenue Services (FIRS), that should collect Valued Added Tax (VAT) and Personal Income Tax (PIT) in the State.
The court, presided over by Justice Stephen Dalyop Pam, had also issued an order of perpetual injunction restraining the Federal Inland Revenue Service and the Attorney General of the federation, both first and second defendants in the suit, from collecting, demanding, threatening and intimidating residents of Rivers State to pay to FIRS, personnel income tax and Value Added Tax.
Justice Pam made the assertion while delivering judgement in Suit No. FHC/PH/CS/149/2020, filed by the Attorney General for Rivers State (plaintiff), against the Federal Inland Revenue Service (first defendant) and the Attorney General of the Federation (second defendant).
The Court, which granted all the eleven reliefs sought by the Rivers State Government, stated that there is no constitutional basis for the FIRS to demand for and collect VAT, Withholding Tax, Education Tax and Technology levy in Rivers State or any other State of the Federation, being that the constitutional powers and competence of the Federal Government is limited to taxation of incomes, profits and capital gains which does not include VAT  or any other species of sales, or levy other than those specifically mentioned in items 58 and 59 of the Exclusive Legislative List of the Constitution.
The judge dismissed the preliminary objections filed by the defendants that the Court lacks jurisdiction to hear the suit and that the case should be transferred to Court of Appeal for interpretation.
Justice Pam, who also dismissed objection raised by the defendants that the National Assembly ought to have been made a party in the suit, declared that the issues of taxes raised by the State government are issues of law that the court is constitutionally empowered to entertain.
He declared that after a diligent review of the issues raised by both the plaintiff and the defendants, the plaintiff has proven beyond doubt that it is entitled to all the eleven reliefs it sought in the suit.
The court agreed with the Rivers State Government that it is the State and not FIRS that is constitutionally entitled to impose taxes enforceable or collectable in its territory of the nature of consumption or sales tax, VAT, education and other taxes or levies, other than the taxes and duties specifically reserved for the Federal Government by items 58 and 59 of Part 1 of the Second Schedule of the 1999 constitution as amended.
Also, the court declared that the defendants are not constitutionally entitled to charge or impose levies, charges or rates (under any guise or by whatever name called) on the residents of Rivers State and indeed any state of the federation.
Lead counsel for the Rivers State Government, Donald Chika Denwigwe (SAN), who spoke to journalists after the court session, explained that the case is all about the interpretation of the constitution as regards the authority of the government at the State and Federal levels to collect certain revenue particularly, VAT.
“So, during the determination of the matter, some issues of law were thrown up like, whether or not the case should be referred to the Court of Appeal for the determination of some issues.
“The court noted that the application is like asking the Federal High Court to transfer the entire case to the Court of Appeal. In which case, if the court so decides there will be nothing left to refer back to the Federal High Court as required by the constitution.”
Speaking on the implication of the judgement, Denwigwe said it is now, unlawful for such taxes as VAT in Rivers State to be collected by any agency of the Federal Government.
FIRS has revealed to journalists today that it has begun the process of appealing the judgment, but from all indications, the agency which is now beginning to fight like a wounded lion is bent on taking unusual steps to continue with what the high court has termed an illegality.

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Abuja is Safe, Peaceful, FG Counters US Security Alert

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The Federal Government of Nigeria has said that there is no security threat within its capital city, Abuja.

The Nigerian government stated this on Monday in response to an advisory by the United States’ Mission in Nigeria warning all Americans to stay away from all military and government facilities in Abuja.

“Due to increased security concerns arising from current global developments, U.S. Mission Nigeria informs U.S. citizens that all U.S.

“Embassy employees and their families are prohibited from non-official travel to a Nigerian military site or other government venue in Abuja at this time,” the mission had stated.

In its response, the Nigerian government maintained that Abuja remained safe for citizens and visitors alike.

In a statement, Nigeria’s Information Minister Mohammed Idris said: “The Federal Government of Nigeria has taken note of the latest security advisory issued by the Embassy of the United States, restricting its staff and their families from non-official travel to military sites or other government facilities in the Federal Capital Territory (FCT), Abuja.

“While the Federal government recognizes and respects the right of foreign missions, including the U.S. Embassy, to issue travel advisories to their citizens, it is important to state categorically that Abuja remains safe for citizens, residents, and visitors alike.

“Nigeria’s security agencies are working around the clock to ensure the continued safety and protection of all residents of the FCT and across the country. The current security architecture in Abuja has not only been proactive but has also recorded significant successes in detecting, preventing, and neutralizing threats.”

“We understand that the U.S. advisory is based on general global developments and does not reflect any imminent or specific threat within the FCT. However, we reiterate to all diplomatic missions, investors, development partners, and the general public that there is no cause for alarm.

“The Federal Government wishes to reaffirm its commitment to the safety of all residents and to maintaining Abuja’s reputation as one of the most secure capitals in the world. Our security and intelligence agencies are monitoring developments across the country and are fully prepared to respond decisively to any threat.

“We encourage citizens to conduct their lawful activities without fear, while also remaining vigilant and reporting any suspicious activity to the relevant authorities,” the minister added.

Meanwhile, the US State Department has issued a “worldwide caution” for Americans, saying the conflict in the Middle East could put those traveling or living abroad at an increased security risk.

“The conflict between Israel and Iran has resulted in disruptions to travel and periodic closure of airspace across the Middle East. There is the potential for demonstrations against US citizens and interests abroad,” the State Department’s security alert said.

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Trump Confirms US Bombing of Iran’s Nuclear Sites, Warns Against Attempt to Retaliate

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U.S. President, Donald Trump, has disclosed that the United States has carried out “very successful attack” on three nuclear sites in Iran namely Fordow, Natanz, and Esfahan.

President Trump disclosed this via Truth Social while warning that “any retaliation by Iran against the United States of America will be met with force far greater than what was witnessed tonight”.

Trump in posts on the social media platform on Saturday described the attack on the Fordow, Natanz, and Esfahan nuclear sites as historic for the USA, Israel and the world, adding that Iran must now agree to end the war.

“We have completed our very successful attack on the three Nuclear sites in Iran, including Fordow, Natanz, and Esfahan.

“All planes are now outside of Iran air space. A full payload of bombs was dropped on the primary site, Fordow. All planes are safely on their way home.

“Congratulations to our great American warriors. There is not another military in the world that could have done this. Now is the time for peace,” Trump wrote.

Sources said the United States Air Force used 6 Northrop B-2 Spirit stealth bombers to drop 12 bunker-buster bombs, that is 360,000 lbs, on the Fordow Nuclear Facility, obliterating the entire nuclear capability.

This is coming after hostilities broke out between Israel and Iran on June 13, when Israel launched airstrikes on several sites across Iran, including military and nuclear facilities, prompting Tehran to launch retaliatory strikes.

The Israel versus Iran crisis has led to fatalities running into hundreds as Iranian Foreign Minister Abbas Araghchi, on Saturday, warned that the U.S. participation in Israel’s ongoing attacks on Iran would be “very unfortunate” and “extremely dangerous for everyone.”

Also, the United Nations’ Secretary-General Antonio Guterres had warned that the ongoing violent conflict between Iran and Israel is “a fire no one can control” and risks spiraling out of control.

Meanwhile, the UN nuclear watchdog, the International Atomic Energy Agency (IAEA) had earlier released the most alarming update on the ongoing Israel’s attacks on Iran’s nuclear facilities.

IAEA Director General, Rafael Grossi, on Friday, warned the UN Security Council that Israeli attacks on Iranian nuclear facilities were degrading critical safety systems and placing millions at potential radiological risk.

Grossi said at Natanz, the destruction of electricity infrastructure and direct strikes on enrichment halls had led to internal contamination.

Grossi said while no radiological release has been detected outside the facility, warned that uranium compounds now posed significant health hazards within.

At Isfahan, the UN nuclear watchdog boss said multiple buildings including a uranium conversion plant and a metal processing facility, were hit.

At Arak’s Khondab reactor site, he said that damage was sustained, though the facility was not operational.

The greatest risk, however, he said, is the Bushehr Nuclear Power Plant, which remains operational.

Grossi warned that a direct strike “could result in a high release of radioactivity to the environment.”

He stressed that even a disruption of its external power supply could lead to a core meltdown.

In the worst-case scenario, radiation would affect populations hundreds of kilometres away and require mass evacuations, he warned.

Grossi also warned against any attack on the Tehran Nuclear Research Reactor, which could endanger millions in the capital.

“Nuclear facilities and material must not be shrouded by the fog of war,” he said. We must maintain communication, transparency and restraint,” the IAEA chief stressed.

Grossi pledged that the IAEA would continue to monitor and report on nuclear safety conditions in Iran and reiterated his readiness to mediate.

He stressed that the agency “can guarantee, through a watertight inspections system,” that nuclear weapons will not be developed in Iran, urging dialogue.

“The alternative is a protracted conflict and a looming nuclear threat that would erode the global non-proliferation regime,” he stressed.

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Adeleke Rejoices with Oluwo of Iwo, Oba Akanbi at 58

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The Executive Governor of Osun State, Senator Ademola Adeleke, has rejoiced with the Paramount ruler of Iwoland, HIM Oba Abdulrasheed Adewale Akanbi, Telu I, on the occasion of his 58th birthday, lauding the foremost traditional ruler’s passionate commitment to uplifting humanity.

A statement by the Governor’s Chief Press Secretary, Mallam Olawale Rasheed rveals tgat the Governor acknowledges Oba Akanbi’s exceptional sense of dedication to the advancement of Iwoland, utilising contacts and his God-given resources to facilitate developments, praising him for leading the charge for the remarkable transformation that Iwoland is experiencing under his reign.

The Governor commends the frontline monarch for the shared vision for growth and impactful governance, hailing him as a model for purposeful leadership given the monumental progress that Iwoland is recording under this rulership.

“I rejoice with His Imperial Majesty, Oba Abdulrasheed Adewale Akanbi, Telu I, on the occasion of his birthday. Oba Akanbi is a visionary leader and his steadfast pursuit of a virile and prosperous Iwoland is truly inspiring,” the Governor was quoted in a congratulatory message.

“On this day, I honour Kabiyesi’s exceptional contributions to the promotion of our tradition and the endearing effort in fostering peace and harmony in Iwoland and Osun state as a whole.

“It is my prayer that Kabiyesi’s new age brings him more joy and abundant blessings. I also beseech God Almighty to give him more grace to continue his life of service and impact.”

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