The Federal High Court (Federal Inland Revenue Service) Practice Directions, 2021: An Appraisal

18 Pages Posted: 20 Sep 2021

Date Written: August 18, 2021

Abstract

On May 31, 2021, the Chief Justice of the Federal High Court issued a Practice Direction with a view to enhancing the efficiency of tax dispute resolution at the Federal High Court. The Practice Direction introduced extensive changes to fairly settled statutory tax dispute resolution mechanisms and civil procedure rules. The Article examines the implications of the Practice Direction on tax administration in Nigeria and the legality of some of its provisions. It turns out that several matters which the Practice Direction covers are not only beyond the residual rule-making power of the FHC CJ but are inconsistent with the primary tax statutes and the Constitution. At the very least, the changes the Practice Direction seeks to introduce, require primary legislation to be effective. Worse, the Practice Direction prescribes a standard for defending the government’s tax recovery suit at the FHC in a manner that unfairly restricts taxpayers’ constitutional right to a fair hearing and access to justice. We firmly recommend that the Practice Direction be revised to align its provisions with the Constitution and the existing laws, or better still, out-rightly revoked. Otherwise, any attempt to enforce the Practice Direction against taxpayers should be challenged or resisted in litigation.

Keywords: Practice Direction, Tax, Enforcement, Taxpayer

JEL Classification: K34

Suggested Citation

Arubike, Stephen Chima and Asuenimhen, Marian and Ezekwesiri, Emeka, The Federal High Court (Federal Inland Revenue Service) Practice Directions, 2021: An Appraisal (August 18, 2021). Available at SSRN: https://ssrn.com/abstract=3907267 or http://dx.doi.org/10.2139/ssrn.3907267

Marian Asuenimhen

Independent ( email )

Emeka Ezekwesiri

G. Elias & Co. ( email )

Nigeria

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