Finance Acts 2020, 2021: Be more transparent, obey the Rule of Law on stamp duties/EMTL, Ubani tells Federal Government Institutions, Deposit Money Banks and individuals
Kehinde Akinpelu
A member of the Taxation Standards and Practice Monitoring Committee of the Chartered Institute of Taxation of Nigeria, (CITN), Francis Uzoma Ubani, (FCTI), has called on all Federal Government institutions, deposit money banks and individuals involved, to be more transparent, observe and obey the Rule of Law on stamp duties/EMTL, collection, recovery and distribution, as enshrined in the relevant provisions of the 1999 Nigeria Constitution as amended and Stamp Duties Act, 2004, as amended.
He warned that when “injustice becomes law, resistance becomes a duty.”
These were contained in his petition to the NBA.
The petition was titled: ”Unconstitutionality of some of the provisions of the Finance Acts, 2021 and 2022, unlawful and illegal collection, recovery and distribution of revenue from stamp duties/electronic money transfer levy (EMTL) by the Federal Government of Nigeria, contrary to the Provision of Section 163 of the 1999 Constitution of the FRN, as altered, and the need for all Federal Government institutions, money deposit banks and individuals involved to be more transparent and obey the rule of the law on stamp duties/EMTL collection, recovery and distributions as enshrined in the relevant provisions of the 1999 Constitution of the FRN, as altered and the Stamp Duties Act, as amended.”
An acknowledged copy of the petition was made available to journalists on Tuesday.
Ubani wrote: “We therefore, urge all Federal Government Institutions, Deposit Money Banks and individuals involved, to be more transparent, observe and obey the Rule of Law on stamp duties/EMTL, collection, recovery and distribution, as enshrined in the relevant provisions of the 1999 Nigeria Constitution, as altered, and Stamp Duties Act, 2004, as amended, as when INJUSTICE becomes LAW; RESISTANCE becomes a DUTY.
“In the light of the very clear provisions of the 1999 Constitution of the Federal Republic of Nigeria, and the Stamp Duties Act, it is obvious that the Federal Government, through the FIRS has no “Constitutional Right” to demand and collect stamp duties, pursuant to Section 4 (2) of the Stamp Duties Act, that is not provided for them by the Constitution to collect. I believe that we have been able to set the record straight and hereby enjoin the Federal Government, through the FIRS to desist from further usurping the powers of the different federating States of the Federation forthwith.
“In conclusion therefore, the continuous sharing through Federation Account of stamp duties/EMTL in total violation of the provisions of Section 163 of the 1999 Constitution, without the proper amendment of the relevant provisions of the said Constitution, is a huge slap on the sensibility of members of the Nigerian Bar Association, and the Legal Profession in Nigeria, and therefore should STOP forthwith, through your official intervention on this very all-important Constitutional and purely Legal issue. The “Legal Profession” in Nigeria is a noble profession that should not give room to brazen violation of the Constitution of Nigeria.
“We, therefore, call on all well-meaning “Legal Practitioners” in particular and the NBA in general, to stand up and defend the said provisions of the Constitution of the FRN, 1999, and condemn the blatant violations already done, which is one of the core functions of the NBA and ensure that the rule of law is henceforth, strictly observed and upheld, in respect of collection, recovery and distribution of stamp duties/EMTL revenue in Nigeria. Ensuring, through the instrumentality of the law, that Deposit Money Banks and Financial Institutions STOP remitting stamp duties/EMTL in respect of instruments initiated and executed, and transactions initiated and carried out, between persons and individuals, pursuant to Section 4 (2) of the Stamp Duties Act, to FIRS forthwith, and START to REMIT same to the Relevant Tax Authorities in the different federating States of the Federation where they are generated in line the relevant provisions of the Constitution and the Stamp Duties Act.”
The petition further read: “Deposit Money Banks and Financial Institutions should henceforth STOP remitting qualified chargeable stamp duties/EMTL accruable to the different federating States of the Federation, pursuant to Section 4 (2) of the Stamp Duties Act, as amended, to the FIRS, instead start henceforth to remit to the “Relevant Tax Authorities in the various federating States of the Federation as applicable.
“The different federating States of the Federation have a duty to explore and track the recovery of stamp duties/EMTL that accrue to both the Federal Government and the State Governments, pursuant to Section 4 (1) and 4 (2) and Section 163 (a) and (b) of the 1999 Constitution, as altered, and to recover back years of unremitted stamp duties from banks and other companies in the various sectors of the economy.
“It is obvious that the activities of the Federal Government through the FIRS, CBN and Deposit Money Banks, in the collection, remittance and distribution of stamp duties/EMTL, is shrouded with a lot to be desired, and calls to question as to the motive behind the unwholesome actions of the Federal Government, and its agencies, (FIRS) and (CBN) in this regard.
Section 4 (1) and 4 (2) of the Stamp Duties Act, and Section 163 (a) and (b) of the 1999 Constitution, as altered, are very clear and unambiguous on Taxing Powers of the Federal and State Governments on issues of stamp duties and capital gains tax in Nigeria. Therefore, the unnecessary controversies surrounding stamp duties/EMTL are clearly caused by the lack of transparency in the collection, remittance and distribution of stamp duties/EMTL on the part of the Federal Government, and its agencies, (FIRS and CBN), on how much stamp duties/EMTL that has been generated, pursuant to Section 4 (1) and 4 (2) of the Stamp Duties Act.
“We therefore, urge all Federal Government Institutions, Deposit Money Banks and individuals involved, to be more transparent, observe and obey the Rule of Law on stamp duties/EMTL, collection, recovery and distribution, as enshrined in the relevant provisions of the 1999 Nigeria Constitution, as altered, and Stamp Duties Act, 2004, as amended, as when INJUSTICE becomes LAW; RESISTANCE becomes a DUTY.
“In the light of the very clear provisions of the 1999 Constitution of the Federal Republic of Nigeria, and the Stamp Duties Act, it is obvious that the Federal Government, through the FIRS has no “Constitutional Right” to demand and collect stamp duties, pursuant to Section 4 (2) of the Stamp Duties Act, that is not provided for them by the Constitution to collect. I believe that we have been able to set the record straight and hereby enjoin the Federal Government, through the FIRS to desist from further usurping the powers of the different federating States of the Federation forthwith.
“In conclusion therefore, the continuous sharing through Federation Account of stamp duties/EMTL in total violation of the provisions of Section 163 of the 1999 Constitution, without the proper amendment of the relevant provisions of the said Constitution, is a huge slap on the sensibility of members of the Nigerian Bar Association, and the Legal Profession in Nigeria, and therefore should STOP forthwith, through your official intervention on this very all-important Constitutional and purely Legal issue. The “Legal Profession” in Nigeria is a noble profession that should not give room to brazen violation of the Constitution of Nigeria.”
