APPEAL COURT AFFIRMS EFCC’S POWER ON TAX EVASION

Justice Balkisu Bello Aliyu of the Court of Appeal, Abuja Division, has affirmed the power of the Economic and Financial Crimes Commission, EFCC, to investigate and prosecute cases of tax evasion and other tax-related issues. Justice ALIYU gave the ruling in a unanimous judgment of the panel of three justices, which include Justice Adebukunola Banjoko and Justice Okon Efreki Abang. The Appellate Court set aside the judgment of the trial judge, Justice Taiwo Taiwo of the Federal High Court sitting in Abuja, which held that the EFCC “has no statutory power to cause investigation on tax evasion. The trial judge also ruled that the Commission cannot extend its investigation of money laundering to tax evasion, being the predicate offence. The judgment of the trial court originated from a suit filed by Insurance Resourcery and Consultancy Service Limited, which dragged the EFCC to court for inviting and investigating its officials for tax evasion. The company claimed that EFCC lacked the competence and legal right to investigate its officials on such matters, citing provisions in the Federal Inland Revenue Service Act. Dissatisfied with the judgment of the trial court, the EFCC approached the Appellate court relying on Section 46 of its Establishment Act, praying the court to set aside the judgment of the trial court on five grounds of appeal. One of the grounds is whether the trial court was right when it held that the Commission lacked statutory power to invite or investigate Resourcery and Consultancy Service Limited for money laundering, which has tax evasion as a predicate offence. In her ruling, Justice Aliyu of the Court of Appeal held that the learned trial judge erred in holding that the EFCC “has no power to investigate tax evasion in view of Section 46 of the EFCC Act. Further, since the FIRS Act itself specifically provides and supports collaboration between the FIRS and the EFCC and other Government Agencies in the investigation and enforcement of tax evasion, it followed that the above finding of the trial court that the Appellant cannot extend its investigation of money laundering to tax evasion as a predicate offence is not supported by law and therefore wrong and I so hold”. The appellate judge also set aside other issues for determination in favour of the EFCC, stressing that “having resolved the two issues for determination in favour of the Appellant means that the appeal is meritorious and it is allowed by me. Consequently, the judgment of the Federal High Court, sitting in Abuja, delivered on 28th July 2022 by Hon. Justice Taiwo. O. TAIWO IN Suit No: FHC/ABJ/CS/457/2022 is set aside in its entirety”.