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Standard Chartered Bank In N890.9million Tax Liabilities Saga …the EFCC and RMAFC Connection

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Standard Chartered Bank Nigeria Limited has approached a federal high court in Lagos urging the court to declare that Value Added Tax VAT and withholding Tax WHT liabilities by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), as illegal, and of no effect whatsoever.

The Bank is also urging the court to  declare that the Federal Inland Revenue Service is the sole agency of the Federal Government statutorily empowered to administer, assess, collect and enforce the payment of, Federal taxes (including VAT and WHT due to the Federal Government) pursuant to the Value Added Tax Act, Companies Income Tax Act and other tax statutes enumerated in the First Schedule to the Federal Inland Revenue Service (Establishment) Act.

The Bank in amended Statement of Claim filed before the court by its lawyer, Chukwuka Ikwuazom, SAN, is contending that the Federal Inland Revenue Service cannot abdicate these statutory functions to the Revenue Mobilization Allocation and Fiscal Commission RMAFC and Economic and financial commission EFCC who are 1st and 2nd defendants respectively in this suit

The Bank stated that, sometime in 2016, the RMAFC, in the purported exercise of it’s powers allegedly donated to it by the Federal Inland Revenue Service, commenced what it described as “verification and reconciliation of revenue collections and remittances” by banks (including the Plaintiff) on behalf of the Federal Inland Revenue Service and the Nigeria Customs Service for the period between 2008 and June 2012.

It stated that the Defendant, without any factual or legal basis, issued a demand notice demanding from the Bank a whooping sum of N20,701,648,351.40 (Twenty billion, seven hundred and one million six hundred and forty-eight thousand three hundred and fifty-one Naira and forty kobo) which the RMAFC claimed to be unremitted Value Added Tax (“VAT”), and Withholding Tax (“WHT”) due to the Federal Government from the bank for 2008 to June 2012 financial years.

The bank objected to the RMAFC authority to issue the demand notice, it not being the agency of the Federal Government statutorily empowered to administer, collect and enforce tax obligations on behalf of the Federal Government.

The bank further objected to the demand notice on the ground that the bank did not owe the alleged tax liability contained in it.

The Bank maintained that, at the time of the issuance of the said demand notice, it has fully discharged its tax obligations to the Federal Inland Revenue Service for the relevant years (2008 to June 2012) and the Federal Inland Revenue Service, which had concluded a tax audit of the bank, had not \ issued any additional assessment of tax to the bank

But, the RMAFC allegedly acting through its agents, Messrs. Dele Olaniyan & Co. and Aikosi Festus & Co., disregarded the bank’s objections and continued to pursue the recovery of the purported VAT and WHT liabilities.

Following several invitations of employees of the bank to the offices of the EFCC at No. 154 Awolowo Road, Ikoyi, Lagos and threats of arrest and detention of its senior employees, the bank reluctantly agreed to engage with the RAMFC consultants on the alleged unremitted VAT and WHT.

Following several invitations of employees of the bank to the offices of the EFCC at No. 154 Awolowo Road, Ikoyi, Lagos and threats of arrest and detention of its senior employees, the bank reluctantly agreed to engage with the RAMFC consultants on the alleged unremitted VAT and WHT.

It stated that as a result of the 1st Defendant’s illegal verification exercise and unlawful and baseless demand for unremitted VAT  and WHT, the bank has suffered and continues to suffer inconvenience and incur costs by its engagement of tax consultant and legal counsel as well as trips made by its officers to the 1st and 2nd Defendants’ offices.

The bank further stated it has suffered untold hardship and intimidation by the  Defendants in respect of the repeated demands for payment of WHT and VAT, which is clearly outside the statutory powers of the Defendants

Consequently, the Bank is praying the court for a declaration that it is unlawful for the RMAFC and EFCC to usurp the statutory functions of administration, assessment, collection, and enforcement of payment of federal taxes (including VAT and WHT due to the Federal Government) which functions are vested upon the Federal inland Revenue Service pursuant to the Value Added Tax Act, Companies Income Tax Act and other tax Statutes enumerated in the First Schedule to the Federal Inland Revenue Service (Establishment)

The bank is seeking the following declarative orders.

A declaration that it is unlawful for the 1st Defendant to bypass the statutory powers under the Companies Income Tax Act, Value Added Tax Act, and the Federal inland Revenue Service (Establishment) Act for resolving a tax dispute and to procure the EFCC to harass, threaten, intimidate and coerce the bank into paying VAT, WHT, or indeed any other tax liability which the bank. genuinely disputes.

‘’A declaration that the conduct of the defendants has deprived the bank of the statutory procedure for challenging tax assessments as provided under the Companies Income Tax Act, Laws of the Federation of Nigeria 2004, the Federal inland Revenue Services Act, Laws of the Federation of Nigeria 2004, and the Value Added Tax Act.

‘’A Declaration that the 1st Defendant’s demand of the sum of N890,931,432.00 (Eight Hundred and Ninety Million, Nine Hundred and Thirty-One Thousand Four Hundred and ThirtyTwo Naira) as VAT and WHT liabilities from the bank in furtherance of its purported “Verification and Reconciliation of Revenue Collections and Remittances” exercise, is premised on an illegal process and therefore invalid, illegal, null, void and of no effect whatsoever.

An Order of this Honourable Court setting aside the 1st Defendant’s demand on the bank for the sum of N890,931,432.00  as VAT and WHT allegedly collected on behalf of, but not remitted to the Federal Government for the period from July 2012 to December 2015 as communicated vide the 1st  Defendant’s letter dated 29″ April 2019.

However RAMFC it’s statement of defence and counter claim filed before the court by its counsel Chief Godwin Obla SAN denies

almost all the claims of  Standard Chartered bank and states that the bank’s averments thereof are self-serving, half-truths and therefore puts the bank to the strict proofs of the averments thereof.

In further reaction to the foregoing paragraphs thereof. RAMFC states that prior to the commencement of the its Defendant’s verification exercise, it invited all banks to its headquarters on the 29th of November, 2016 to sensitize and educate them of its constitutional mandate thereof to pursue the exercise.

In specific reaction to  the Statement of Claim, RAMFC states that the consultants, before the commencement of the verification exercise held a commencement meeting with the bank at the bank’s head office in Lagos, wherein RAMFC’s consultants further apprised the bank of it’s letter requesting to provide all relevant documents required for the verification exercise.

The bank requested to sight any letter of authorisation and introduction by the Federal Inland Revenue Service’s as a precondition to releasing any of the documents requested for verification.

Despite the Federal Inland Revenue Service’s letter, as aforesaid, requesting the bank to release all relevant documents to enable it’s consultants to carry out their verification exercise, the bank was adamant and refused to provide the required documents as requested. It became obvious that consequent on the bank’s refusal to release the required relevant documents for the verification exercise, RAMFC subsequently resorted to the alternative approach through the bank’s own published audited Financial Statements, and bank’s Pay Direct Platform, to form best of judgment opinion and to come up with a report on the 18th of April, 2018 indicating a liability of unpaid remittances in the sum of N6, 069, 844, 000.00.

Rather than furnishing the RAMFC’s  consultants with documents to show evidence of any transaction as proof of payment of remittances within the accounting period verified against them by the  RAMFCs consultant, to establish the basis of their objection, the bank became evasive and rather requested to know how the RAMFC arrived at its computation.

By a letter dated the 22nd of May 2017, the bank came up with technical objection that all that the RAMFC’s consultant findings were not unremitted collectables but were tax avoidance and requested a discharge from the liabilities for payment of the sum of N6, 069, 844, 00. 000. on the basis of a claim that  its books for the period  had been audited and found no such outstanding liabilities.

The bank  pressed for further reconciliation meeting, and whereupon, on the 29th of August, 2017, both the RAMFC consultant and the bank agreed on a few things but could not reach a consensus on several others as the bank failed to produce relevant documents.

Further reconciliation was held at the instances of the bank on the 11th of April 2018, on request that it be granted another opportunity to review fees, commissions and Work in progress to satisfy itself that non-Vatable items are not included,

Despite all of the efforts by the RAMFC  to accommodate the bank’s hecklings and volte-faces after every reconciliation, RAMFC yet obliged the bank another reconciliation after the bank had objected to the outstanding collectable liabilities of N3, 718, 106, 000.00

Consequently, RAMFC issued the  bank a demand notice reflecting the outcome of the reconciliation in the liabilities of N1, 073, 718, 663.74. The Economic and Financial Crimes Commission (EFCC) swooped in as a stakeholder when the bank became recalcitrant on meeting these liabilities after infractions had been established.

However, in a strange twist, the bank, by a letter dated the 27th of December 2018 agreed to the liabilities of tax evasion in the sum of N43, 689, 000 in respect of Value-Added Tax (VAT) and additional sum of N141, 012, 000 for Withholding Tax (WHT), totalling N184, 701, 000. 00, and proceeded to pay the total amount into the Recovery Account, leaving a total outstanding balance of N889, 017, 663. 74 unpaid.

Rather than paying up the outstanding balance, bank continued in its antics of unending objections thereafter, objecting even to the outstanding balance.

Afters, considering the sum of N184,701,000 already paid by the plaintiff the sum of N 752,414,250.23 was left as the outstanding liabilities against the bank.

RAMFC avers that the Plaintiff suit is an attempt to use the machinery of justice to avoid its mandatory statutory obligation to the Nigeria state.

However in it’s counter claim RAMFC relying on it’s statement of defence and it’s witness deposition prays the court for the following reliefs:

A declaration that by the reconciliation meeting held in Abuja between RAMFC and the bank on the 4th of October 2018, pursuant to its review exercise on accruals, to and disbursement from, the Federation Account, the liabilities of the bank is in the sum of N1, 073, 713, 718, 663. 74 (One Billion, Seventy-Three Million, Seven Hundred and Eighteen Thousand, Six Hundred and Sixty Three Naira Seventy-Four Kobo) being the unpaid remittances to the Federation Account as unearthed in the Reconciliation Meeting remains valid, true and represents the true state of the bank’s liabilities to the Federation Account.

A declaration that by the earlier initial part-payment of the sum of N184, 701, 000. 00 made by the bank pursuant to the RAMFC review exercise, the bank still has balance of liabilities of unpaid remittances from taxes, penalty and interests due for payment to Federation Account of the Federal Government of Nigeria in the sum of N889, 017, 663. 74 (Eight Hundred and Eighty-Eight

Million, Seventeen Thousand, Six Hundred and Sixty-Six Hundred, Seventy-Four Kobo)

An order of the Court directing the Plaintiff to pay the sum of N889, 017,663. 74 (Eight Hundred and Eighty-Eight Million, Seventeen Thousand, Six Hundred and sixty six thousand seventy-four Kobo being the balance of liabilities of unpaid remittances from taxes due for payment to Federation Account of the Federal Government of Nigeria.

Interest on the said sum at prevailing interest rates fixed by the Central Bank of Nigeria from the time payment was due and 10% interest until the sum is liquidated.

Meanwhile, the presiding Judge, Lewis Allagoa has adjourned till next year for hearing to commence.

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Aliu Gafar delivers stellar performance as Esusu in Femi Adebayo’s Seven Doors

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By Rtn. Victor Ojelabi

The much-anticipated movie series Seven Doors by Femi Adebayo has finally premiered, currently showing on Netflix, captivating audiences with its intricate storytelling and compelling characters.

The movie begins with a haunting scene of seven women under a mysterious spell leaping to their deaths from a waterfall, setting the tone for a gripping tale that unravels in Ilara Kingdom.

The series explores various societal issues, including corruption, greed, gluttony, family values, malicious conspiracies, and the delicate balance of law and order.

Central to its plot is the calamitous fate of Oba Adedunjoye, the Onilara of Ilara, whose failure to perform traditional rites—symbolised by knocking on seven doors—unleashes devastating consequences on his kingdom.

At the heart of this chaos is Esusu, a malevolent and exiled villain whose return wreaks havoc.

Esusu, a ni ohun t’Eledumare o ni.
Eledumare o ni ika, ika ni Esusu

The character of Esusu, pivotal to the story’s depth, is masterfully brought to life by Aliu Gafar.

Gafar’s first appearance, late in Episode 2, immediately shifts the narrative, introducing a chilling force that spares no one, not even the royal family. His commanding portrayal encapsulates the essence of Esusu, a man whose wickedness defies comprehension.

The backstory reveals Esusu’s sinister pact with Ọba Adejuwọn, an ancestor of Adedunjoye.

Desperation led Adejuwon to seek Esusu’s help to evade death—a move that came at an unthinkable cost, forgetting that bi alọ ba lọ, abọ nbọ (a pendulum that swings to is still coming to swing fro).

Esusu’s return demanded not only royal treatment but the freedom to live as he pleased, challenging the very fabric of the kingdom.

Gafar embodies this complex character with remarkable precision, delivering a performance that is both chilling and unforgettable.

With almost two decades in Nollywood, Aliu Gafar has solidified his reputation as a versatile and dedicated actor.

His extensive filmography includes acclaimed productions such as Jagun Jagun, Anikulapo, Iyalode, Eefin, and Omo Ajele.

His role in Seven Doors further cements his legacy as a master of his craft, showcasing his ability to seamlessly portray multifaceted characters.

The Yoruba actor has also garnered accolades for his work, including the Best Actor award at the Dallas International Yoruba Movies Awards for his role in Peregun.

His commitment to the industry and his talent for captivating performances continue to make him a force to be reckoned with in Nollywood.

In Seven Doors, Gafar’s nuanced performance as Esusu elevates the series, demonstrating his ability to command attention and bring depth to a complex narrative.

His contribution to the Nigerian film industry remains invaluable, and his portrayal of Esusu is a testament to his enduring excellence.

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Ogun State Prominent Monarchs, Business Tycoons, Others Honor Olusho Agba At The Confession 2024

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The Olusho Agba’s confession 2024 attracted more dignitaries as three respected monarchs in Ogun honour the event by physical appearance, alongside side most prominent CEOs in Ogun.

 

The royal fathers present at the laudable event held at Continental Suits in Abeokuta include HRM Oba Oyabanji Adetunji (Oloja Of Oja Odan) HRM Oba Buhari Makinde (Oniwoye of Iwoye Land) HRM. Oba Lukmon Kuoye (Olu of Imasayi).

 

Also Chief Executive Officer of IBD Foundation, Dr. Mrs. Lara Dende, the Chief Executive Officer of Pelican Valley Nigeria Limited Amb. Dr Tunde Adeyemo and CEO of Zolakaz Oil and Gas Alh. Sanni Azeez was also present at the event.

 

The Confession 2024 features a series of content creators, comedians, singers and dancers, and artists of different fields such as Dr Smile, Hafeez Oyetoro (Simply Saka), Woli 3310, Chukwuka Jude, Babalegba

Biola Adekunle, Femi Obimodede, Ishau Abidemi, and many more.

 

Below are some pictures from the event…

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Wife drags Ex-UBA Top Shot, Samuel Eziafa Adikamkwu to court over abandonment of family, infidelity …….Petitions IGP over threat to life

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Federal Capital Territory High Court sitting in Gudu District and presided over by Justice M. Osho-Adebiyi, on Wednesday adjourned to January 19, 2025 a divorce case instituted by Mrs. Loretta Adikamkwu against her husband, Samuel Eziafa Adikamkwu, a former top official of the United Bank for Africa (UBA).

 

The mother of four, Mrs. Adikamkwu has dragged her husband of over 31 years to court for divorce over abandonment of the family for more than four years and alleged infidelity.

 

According to court document seen by our reporter with Suit number PET/073/2023, Mrs. Adikamkwu alleged that her husband packed out of their matrimonial home at Recreation Drive, Cooperative Villas, Badore, Ajah, Lagos and removed almost all his belongings therefrom (which included personal chattels, clothing and six vehicles of assorted brands) leaving behind the petitioner only vehicle (a Toyota land Cruiser) he gave to her some years back.

 

 

She further alleged that Mr. Adikamkwu withdrew all financial support and upkeep to the family, prompting her to desperately begin to dispose of all her belongings, in order to feed herself, the children and meet urgent Sundry costs, arising from the running of the home.

 

She also alleged in Paragraph 6(c) of her petition that after her husband abandoned his family, he was said to have been cohabiting with a lady called Miss Stella Umejuru with whom he regularly travels outside Lagos for business.

 

Mrs. Adikamkwu declared that her husband, who was formerly a Lecturer at Bendel State University, (now Ambrose Alli University), Ekpoma before Ndidi Elumelu, his friend, facilitated his employment by the United Bank for Africa (UBA), has no reason whatsoever not to cater for his family as he is now engaged in booming property business after leaving the bank.

 

 

 

According to the lady, who is a graduate of Bendel State University, she would have been financially independent and be in position to cater for herself and the children but for her husband who stopped her from working several years ago.

 

She stressed that because of the financial difficulties she was facing with her children she was compelled to sell the Toyota land Cruiser which her husband gave to her some years back to maintain the house that was dilapidating, settle numerous bills, including electricity and other sundry expenses.

 

The lady lamented that her husband got furious when he heard she had sold the car and he succeeded in retrieving the vehicle from a car dealer and the issue is now a subject of police investigation as some unknown persons have been stalking her and threatening her life since the family feud erupted.

 

 

However, the Respondent vehemently denies the averments contained in paragraph 6(c) of the petition and states that he does not know, neither is he acquainted with anybody ( lady) called Miss Stella Umejuru, and denies that he lives or travels with either the said lady or any lady at all.

 

The Respondent also denied the assertions contained in paragraph 6(d) of the petition and denied that he has committed adultery or that he has deserted the petitioner.

 

He admitted he is no longer living in the family house in Lagos as he had to “temporally relocate to Abuja when he secured a Contract Appointment with The Abuja Electricity Distribution Company Plc (AEDC) from 2021 to June, 2024.

 

Mr. Adikamkwu added an affidavit in response to his wife’s petition that he “is not aware that there is any debt burden on the family, but states that if there is any such debt, it is personal to the petitioner.”

 

 

Meanwhile, Mrs. Adikamkwu has petitioned the Inspector-General of Police over issues arising from the sale of the Toyota Land Cruiser which her husband gave her several years ago.

 

The letter to the IGP dated 4 October, 2024 titled “SOS-request for urgent intervention in a case of forgery, threat to lives and high handedness by officers of the Bar Beach Police Station, and Zone 2 Command, Onikan, Lagos” was written on her behalf by one of her Lawyers, Benjamin Nwaokenye, Esq of Integrity Partners law firm, Abuja.

 

Part of the letter reads: “We are solicitors to Mrs. Loretta Adikamkwu (hereinafter referred to as “Our client”, at whose behest, we act in this matter. We write to seek your urgent intervention in a looming threat to the life of our client, and a seeming case of forgery perpetrated against her, by Ojebola and Messrs, Sam Adikamkwu, Segun Ajide, Gbenga ASP Churchill of the Bar Beach Police Station, Lagos.

 

 

To put this matter in the right perspective, we are reliably informed by our aforesaid client that: (a) She was hitherto married to one Mr. Sam Adikamkwu , from whom she is now separated and now locked in a bitter judicial process, in a petition for divorce in PET/073/2023, at the High Court of the Federal Capital Territory, Gudu, Abuja).

 

“(b) The aforesaid Mr. Sam Adikamkwu, prior to the aforesaid divorce proceedings, vacated their Badore (Ajah) residence, where he hitherto resided with our client, and removed almost all his belongings therefrom (which included personal chattels, clothing and six vehicles of assorted brands) leaving behind our client, only vehicle (a Toyota land Cruiser) he gave to our client some years back, and strangely, a short machine gun, which was discovered in his wardrobe, in the course of cleaning the house, having forgotten to lock the bedroom door. ( see attached pictures)

 

The aforesaid Mr. Adikamkwu, it must be reiterated, withdrew all financial support and upkeep to our client and the family, prompting our client to desperately begin to dispose of all her belongings, in order to feed herself, the children and meet urgent Sundry costs, arising from the running of the home.

 

“In the course of disposing of her personal belongings, our client contacted one Mr. Segun Ajide, a car dealer, to assist in disposing off her Toyota land cruiser, and thereupon delivered to him, the Original custom and purchase papers of the vehicle, which the dealer demanded.

 

“Mr. Ajide sold our client’s vehicle, debited her with some colossal costs and remitted the balance to our client.

 

“Weeks afterwards, Mr. Ajide contacted our client to inform her that the vehicle had been impounded from the purchaser by Mr. Adikamkwu, with the help of one Mr. Churchill of the Bar Beach Police Station, and thereupon requested our client to intervene.

 

 

Our client insisted on intervening only if a formal invitation was sent to her, which the aforesaid persons could not procure, but resorted to harassing our client.

 

“Mr. Segun was later to inform our client that the vehicle had been released to Mr. Sam Adikamkwu by the Bar Beach Police Station

 

“Upon the request of our client to Mr. Segun Ajide for copies of all documents related to the sale, Mr. Ajide was evasive, until Mr. Adikamkwu filed his answer to our client’s petition wherein, it was discovered that several documents were forged by Mr. Ajide and the eventual purchaser Mr, Odebola, in the alleged sale without probable cause. .

 

“Prior to discovering the forgery, our client had been trailed by strange people, who at different times followed her home, and even laid siege on her place of resident at Recreation Estate Badore, forcing her to flee for her safety, to an unknown location.

 

 

Our client a few days back, received a WhatsApp invitation from the Nigeria Police Zone 2 Command, Onikan, Lagos, which directed her to meet up with someone, only whose phone numbers were stated in the invitation, but upon calling the line, our client was shocked, that the number was not allocated, causing more anxiety that, it must be a setup.

 

“Sir, our client is unable to carry on her normal business and live a normal life because, she has been living in fear for her safety, believing her life is endangered by the activities of Messrs. Adikamkwu, Ajide and Odebola, who from all indications, are behind her travails, having opted to brow’ beating her into retrieving the vehicle for them, and they are all men of means who can effectuate their threats.

 

“We are informed by our client also that, before the situation got to this dimension, Messrs. Ajide and Odebola, who from all indications, are behind her travails, had consistently called our client to know her where about, and had requested she came with them to see some policemen, without any arrest or invitation.

 

 

Sir, we solicit your esteemed indulgence to cause an investigation into this matter, to safeguard the life of our client from people who are determined to use their police friends, to intimidate and endanger our client, taking into consideration: (a) The forgeries executed by Messrs. Segun Ajide, Gbenga Ojebola and Sam Adikamkwu, using policemen from Bar Beach Police station, far removed from Ajah division of the police, in an attempt to cover same up, and revalidate their actions.

 

(b) The threat to our client’s life in the whole circumstance.

 

(d) The release of the vehicle By the Bar Beach police station, to Mr. Adikamkwu, without any probable cause.”

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