By John Austin Unachukwu
An Akwa Ibom State High Court in Uyo has struck out the N166billion suit by the Akwa Ibom State Internal Revenue Service against Addax Petroleum Development (Nigeria) Limited for want of jurisdiction.
Justice Theresa Obot upheld the firm’s contention that the court had no jurisdiction to adjudicate on claims arising from Oil Mining Lease (OML) operations.
The government agency had claimed N166billion against the defendant for various taxes and levies, including Pay as You Earn (PAYE) and Value Added Tax (VAT), purported to have been unremitted by the defendant between 1997 and 2018 and arising from the defendant’s operations of OML 123 allegedly falling within the territorial jurisdiction of the state.
The defendant, however, contended at the trial that it was not liable to the claimant for any of the taxes and levies claimed, since it did not have any staff or vendors resident within Akwa Ibom State, or otherwise, carry on business in the state.
The defendant further contended that OML 123 is offshore Nigeria and the abolition of the onshore/offshore dichotomy by legislation heavily relied upon by the claimant only related to the revenue derivation formula and did not change the seaward boundary of littoral states, including Akwa Ibom State.
Citing the 1999 Constitution, Federal High Court Act, Allocation of Revenue (Abolition of Dichotomy in the Application of the Principle of Derivation) Act and other legislations alongside decisions of the appellate courts the defendant’s counsel argued that the Federal High Court had the exclusive jurisdiction to determine matters on mines and minerals and offshore Nigeria.
The defendant thus submitted that the High Court of Akwa Ibom State lacked the competence to handle the matter.
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