The Supreme Court has reserved judgment until July 27, 2026, in an appeal filed by the Federal Inland Revenue Service over a tax dispute involving ₦5.5 billion claimed by the Bayelsa State Internal Revenue Service.
A five-member panel of the apex court, led by Justice Ibrahim Saulawa, fixed the date on Wednesday after parties adopted their final written addresses.
Representing the federal government, Attorney General of the Federation, Lateef Fagbemi (SAN), urged the court to overturn the decisions of the Federal High Court and the Court of Appeal, which directed that the disputed funds be paid to Bayelsa State.
He argued that the state failed to comply with provisions of the Personal Income Tax Act, which require tax disputes to first be resolved at the Tax Appeal Tribunal before approaching the courts.
Fagbemi also faulted the reliance of the lower courts on documentary evidence presented by a third party not joined in the suit, describing it as a miscarriage of justice.
He further urged the court to allow the appeal and order Bayelsa State to refund ₦3.6 billion, insisting the disputed funds should remain with the federal government.
Counsel for Bayelsa State, however, argued that the central issue is which authority is constitutionally empowered to collect personal income tax.
He told the court that an audit by FIRS confirmed ₦5.5 billion belongs to the state, adding that the total sum in contention is ₦8.8 billion.
According to him, both the trial court and the Court of Appeal had already affirmed the state’s entitlement to part of the funds.
He maintained that since the money remains in federal custody, the appropriate amount should be released to the state, opposing any claim for interest.
After hearing submissions from both sides, the apex court adjourned for judgment.
(Editor: Ada Ononye)
