The Court of Appeal in Abuja has refused to accept the request made by Rivers and Lagos States for the appointment of Receiver or Manager for the purpose of collecting and keeping Value Added Taxes (VAT) in place of the Federal Inland Revenue Services pending the resolution of all legal disputes in the matter. The two states separately canvassed that the order of status quo ante belum granted on September 10 in favour of FIRS to continue the collection be put on hold in view of the appeal already filed at the Supreme Court against the order. Counsel to Rivers State Ifedayo Adedipe in his oral application pleaded with the three-man panel of the appellate court justices to exercise its power under Order 4 Rule 6 of the Court to appoint a Receiver or Manager to take custody of the VAT in the interest of justice to parties in the matter. Attorney General of Lagos, Moyosore Onigbanjo also argued in line with Rivers and he specifically asked the Court to restrain FIRS from further collecting the tax and to replace it with a Receiver or Manager that will act for patties that are in the legal battle. However, the Presiding Justice, Hamma Simon Tsanami asked the two states to make their request formal by putting it in writing. Meanwhile, the Court has reserved ruling in an application filed by Lagos to join as a respondent in the appeal filed by FIRS against a judgement granted in favour of Rivers State by a federal high court in Port Harcourt. Onigbanjo who moved the application argued that Lagos has vested interest in the VAT collection and that the decision of the Court will affect it one way or the other. Counsel to FIRS, Mahmoud Magaji vehemently opposed the Lagos request to join adding that the state has not shown how its interest will be jeopardized if not allowed in the matter. After talking arguments from parties, Justice Tsanami reserved ruling saying that counsel will be communicated when the ruling is ready.
