The Minister of Justice, Abubakar Malami, SAN, has written letters to Governors of the 36 states of the Federation for the purpose of compliance with audit and recovery of back years of stamp duty from January 15, 2016, to June 30, 2020.
Dr Umar Gwandu, the Special Assistant on Media and Public Relations to the Minister disclosed this in a statement on Wednesday in Abuja.
“Pursuant to Mr President’s approval and directives, I also wish to request Your Excellency to direct the State Ministries, Departments, Agencies, and Regulatory Institutions of Financial Sector to engage and grant access to the appointed Recovery Agents for the purpose of the Audit and Recovery of Stamp Duty to ensure that all established liabilities are remitted as appropriate,” the letter reads in part.
Malami noted that the recoveries are being conducted for the Federal Ministries, Departments, Agencies and Financial Institutions and at this stage liabilities are being established, and no actual recovery has been made.
According to him, Section 111 of the Stamp Duty Act grants the Attorney General of the Federation an exclusive power to recover any outstanding payment or remittances related to stamp duty.
The letters were written pursuant to the provision of Section 111 of the Stamp Duty Act which provides that “all duties, fines, penalties and debts due to the government of the federation imposed by this Act shall be recoverable in a summarily manner in the name of the Attorney General of the Federation or the State”.
He said that what he did was to activate those powers, conduct the audit and recovery of back years stamp duty in collaboration with stakeholders.
He noted that the federal government had set up an Inter-Ministerial Committee on Audit and Recovery of Back years Stamp Duties from Jan. 15, 2016 to June 30, 2020.
“Members of the committee were drawn from office of the Minister in collaboration with relevant Agencies including the office of the Secretary to the Government of the Federation, Federal Inland Revenue Service.
“Others include office of the Accountant General of the Federation, Ministry of Finance, Central Bank of Nigeria, Revenue Mobilization and Fiscal Allocation Commission, among others”.
He said that in view of the need to provide a comprehensive overview of the process and to proper understand the task, the minister organised a meeting with Attorneys General of States.
This, he said, is for them to have similar powers with respect to stamp duty of Ministries, Departments, Agencies and Financial Institutions in their respective states.
NewsWireNGR recalls that in the suit filed before the supreme court on August 24 and marked SC/CV/690/2021, the state attorneys are asking the court to determine whether or not “having regard to the mandatory provisions of Section 4(2) of the Stamp Duties Act Cap. S8 Laws of the Federation of Nigeria (LFN) the plaintiffs (all the state attorneys) are not the sole authority to administer and collect stamp duties on all transactions involving individuals/persons within their respective states?”
They also asked the court to determine “whether having regard to the provisions of Section 4(2) of the Stamp Duties Act Cap. S8 of the Laws of the Federation of Nigeria read in conjunction with the provisions of Section 163, items 58 and 59 of the Second Schedule part I and items 7 (a) and (b) of the second Schedule part II and other provisions of the Constitution of the federal republic of Nigeria, 1999 (as amended), the defendant (Malami) could claim, retain, distribute or in any other manner deal with the monies or sums collected as stamp duties on individual persons transactions within the respective states of the plaintiffs without reference to, concurrence of, input or agreement of the plaintiffs?”
The plaintiffs are also asking the court to ascertain whether or not they are “entitled to 85% of all stamp duties collected on electronic money transfer levy, on electronic receipts or electronic transfer for money deposited in deposit money banks and financial institutions, on any type of account to be accounted for and expressed to be received by the person to whom the transfer or deposit is made in the plaintiffs’ respective states”.
Among other reliefs sought and should the issues above be resolved in their favour, all 36 states through their attorneys-general are praying the court for a declaration that they “are the sole authorities entitled to administer and collect stamp duties on all transactions involving individuals within their respective states”.
“A declaration that the defendant is not entitled to collect, administer, or keep the proceeds of any stamp duties on transactions involving individuals within the respective states of the plaintiffs or any manner interfere with the Plaintiff’s right and authority in the administering the provision of Section 4(2) of the Stamp Duties Act Cap. S8 Laws of the Federation of Nigeria,” they prayed.
“A declaration that the plaintiffs are entitled to all the sums of money collected by the defendant as stamp duties through whatever source or means in their respective states from 2015-2020 and thereafter till the time of the judgment of this honourable court with respect to individual persons’ transactions.
“A declaration that the plaintiffs are entitled to 85% of all stamp duties collected on electronic money transfer levy, on electronic receipts or electronic transfer for money deposited in deposit money banks and financial institutions, on any type of account to be accounted for and expressed to be received by the person to whom the transfer or deposit is made in the plaintiffs’ respective states.”
The plaintiffs also want the court to issue an order directing Malami to account for and pay back all monies and collected by way of stamp duties on individual persons’ transactions within the respective states of the Plaintiffs from the period 2015-2020 and thereafter till the time of the judgment.
“An order of this honourable court directing the defendant to pay over to the Plaintiffs all the sum of monies amounting to One Hundred and Seventy Six Billion, Sixty Seven Million, Four Hundred Thousand Naira (N 176,067,400,000,00) representing ascertained and admitted collected stamp duties on individual persons’ transactions within their respective states for the period of 2015- 2020 and thereafter till the time of the judgment of this honourable court or any other sum as the plaintiffs may be found entitled by the honourable court.
“An order of perpetual injunction restraining the defendant by himself, privies, agents or any persons by whatever name or how so ever called from appointing anyone for the purpose of collecting Stamp Duties on individual persons’ transactions within the respective states of the plaintiffs henceforth.”
No date has been fixed for hearing yet.
