The Federal Inland Revenue Service (FIRS) has accused the Akwa Ibom state government of not paying taxes totaling N84 billion from 2008 to 2015.
In response to the accusation, the Akwa Ibom state government has denied these claims and taken the matter to the Federal High Court in Abuja while filing a lawsuit against several federal entities, including the FIRS.
The FIRS claimed the debt is due to unremitted Value Added Tax (VAT) and Withholding Tax.
Akwa Ibom’s lawyer argued that the state has made several tax payments.
The lawyer also claimed that the federal government owes the state N45.4 billion for road construction reimbursements.
The state has suggested offsetting the alleged tax debt of N10.7 billion against the federal government’s debt to the state.
The Ministry of Works appealed to be removed from the lawsuit, saying it has already paid its debt to the state through a promissory note.
Both sides are considering settling the matter out of court. The court has set a deadline of July 8, 2024, to report the settlement terms.
Justice James Omotosho has warned that the case will be dismissed if witness statements or settlement terms are not submitted by the next hearing.
