Lex Updates Publications

17/05/2023

*The Media Parade Of Seun Kuti And Its Legal Implications*

_By Mustapha Babalola Toheeb_

Media parade essentially means the practice of displaying or communicating to the public, via the media, about an incident or development. In the case of the arrest of a suspect, it is a means of informing the public, usually through publishing on the internet, the identities and offence of these suspects.

_*Follow us on Twitter" *_

By Mustapha Babalola Toheeb Yesterday, photographs of Seun Kuti who had gone to the police station in order to report himself flooded the internet with the photos showing that he was handcuffed. This was also confirmed by his lawyer, Mr Olumide Fusika SAN who claimed that before his client was moved...

28/01/2023

27/01/2023

*TAX AVENUE PRESENTS ITS FIRST EVER TALKSHOW/WEBINAR.*

*TOPIC: OPPORTUNITIES IN TAXATION AND STUDYING TAXATION IN THE UNITED KINGDOM.*

SPEAKERS: JUMOKE SHALOM AJILEYE, UNIVERSITY OF BOURNEMOUTH,UK)

MARY ADEGBENRO (LLM, INTERNATIONAL TAXATION, UNIVERSITY OF BOURNEMOUTH,UK)
DATE: 28th January 2023.
TIME: 2PM PROMPT
Link: http://meet.google.com/bvf-qtti-nhs

This program promises to be interesting as the speakers are going to be sharing their experiences and the opportunities in Taxation particularly for students.

They will also be sharing tips on how to study Taxation in the United Kingdom and any other countries for masters.

It promises to be insightful!!
Be there!!

21/07/2022

Do you know any lawyers and law students ? Please share this exciting opportunity to them

https://thelegalconcierge.org/attend

06/07/2022

THE COURT OF APPEAL, SITTING IN LAGOS HAS UPHELD THE APPEAL FILED BY THE FEDERAL INLAND REVENUE SERVICE (FIRS), AGAINST THE LAGOS HOTEL OWNERS ASSOCIATION OF NIGERIA.

In 2019, the FHC had declared that the FIRS lacked the powers to collect VAT from the Association’s members.
The FIRS thereafter appealed the judgment at the Court of Appeal. Today judgment has affirmed the authority of FIRS to collect VAT from all taxpayers.
TheNigeriaLawyer recalls that on 3 October 2019, the Federal High Court (“FHC” or “the Court”), sitting in Lagos, upheld the powers of the Lagos State Government to charge and collect Consumption Tax from hotels, restaurants and event centres within the state. The Court also restrained the Federal Government from collecting Value Added Tax (VAT) on goods consumed in hotels, restaurants and event centres. This decision was reached in the case between The Registered Trustees of Hotel Owners and Managers Association of Lagos (Hotel Owners) v Attorney General of Lagos State (AG Lagos).
TheNigeriaLawyer recalls that on 3 October 2019, the Federal High Court (“FHC” or “the Court”), sitting in Lagos, upheld the powers of the Lagos State Government to charge and collect Consumption Tax from hotels, restaurants and event centres within the state. The Court also restrained the Federal Government from collecting Value Added Tax (VAT) on goods consumed in hotels, restaurants and event centres. This decision was reached in the case between The Registered Trustees of Hotel Owners and Managers Association of Lagos (Hotel Owners) v Attorney General of Lagos State (AG Lagos).
According to the Court, Consumption Tax on hotels, restaurants and event centres is in the purview of the State Government based on the 1999 Constitution and the Taxes and Levies (Approved List for Collection) Act (Taxes and Levies Act). Thus, the provisions of the VAT Act in respect of consumption of goods and services in hotels, restaurants and event centres are inconsistent with the Constitution and the Taxes and Levies Act, and are therefore void.
The VAT Act was introduced in 1993 to impose and charge VAT at 5% on the value of goods and services supplied in Nigeria. The VAT Act is administered by the Federal Inland Revenue Service (FIRS). Consequently, Hotel Owners have been compliant with the provisions of the VAT Act and have been remitting VAT at 5% to the FIRS.
In 2009, the Lagos State Government enacted the Hotel Occupancy and Restaurant Consumption Law of Lagos State (Consumption Tax Law). The Consumption Tax Law imposes Consumption Tax at 5% on the value of goods and services consumed in hotels, restaurants and event centres within Lagos State. Thus, consumers of goods and services in hotels, restaurants and event centres suffer both Consumption Tax and VAT on the same tax base, amounting to double taxation.
Following this development, the Hotel Owners instituted an action in the FHC, seeking a declaration that the Consumption Tax Law of Lagos State is inoperable and of no effect because the VAT Act has fully covered the field on the subject of Consumption Tax.
The Court, however, ruled in favour of the Lagos State Government upholding the powers of the State Government to charge and collect Consumption Tax. In reaching this decision, the Court relied on the 1999 Constitution and held that Consumption Tax on goods and services consumed in hotels, restaurants and event centres is a residual matter which is within the exclusive legislative competence of a State Government.
The Court further held that under the Taxes and Levies Act, Consumption Tax arising from transactions involving the sale of goods and services in hotels, restaurant or event centres is to be collected by the State Government. The Court also stated that since the Taxes and Levies Act (as amended in 2015) was enacted after the VAT Act of 1993, its provisions have tacitly repealed any provisions of the VAT Act concerning hotels, restaurant and event centres and should thus prevail. The Court therefore restrained the FIRS from collecting VAT on transactions relating to the consumption of goods and services in hotels, restaurants and event places in Lagos.
This Judgment implies that transactions involving supply of goods and services consumed in hotels, restaurants and events centres should not be liable to VAT. However, such transactions should be liable to Consumption Tax at 5%, payable to the State Government.
It is important to note that the FHC, sitting in Abuja, reached a contrary decision in the case between Nigeria Employers Consultative Association & Anor v Kano State Inland Revenue Service in 2018. In that case, the FHC restrained the Kano State Government from imposing Consumption Tax on transactions involving goods and services which are already subject to Value Added Tax. Thus, the Judgment of the FHC, sitting in Lagos, in the Hotel Owners Case has created a clear conflict on the actual position of the FHC on the issue.
Notwithstanding, it is pertinent to note that the Supreme Court upheld the constitutional powers of the Lagos State Government to enact the Consumption Tax Law in the case between Attorney General of the Federation v Attorney General of Lagos State in 2013. However, while the FHC has taken a further step to restrain the Federal Government from collecting VAT on transactions which are covered by the Consumption Tax Law, the Supreme Court was silent on the validity of the VAT Act with respect to such transactions.
Given the apparent conflicts generated by the FHC’s decisions and the constitutional nature of the issues therein, we expect a higher court to provide additional clarification on this issue in order to curb incidences of multiple taxation in the Nigerian business environment and also to ensure consumers and businesses are clear about their obligations under the law. This is because multiple taxation and uncertainty in the application of our laws are major disincentives to investments and have an overall negative impact on the business environment. This issue therefore needs to be addressed speedily.
In the meantime, taxpayers are to be mindful of this development in the tax administration system and should engage with their consultants to evaluate the implications of this case on their businesses and take necessary steps to operate within the ambits of the applicable laws.
Source: TheNigerialawyer

21/06/2022

WE ARE HIRING!!
This is to inform the general public that Lex Updates Publications is looking for individuals/volunteers who are interested and passionate in Taxation or wish to build a career in tax. Interested candidates should kindly forward their interests via email; [email protected] or Whatsapp (08106244073).

The deadline for submission has been extended from the original date to the 1st of July, 2022.

20/06/2022

HISTORY OF TAXATION IN NIGERIA.

05/06/2022

I was privileged to feature in an interview with Thrivee, a Nigerian personal development brand, where he shared his thoughts on his internship journey and its relevance/benefits to aspiring lawyers cm students in general.

Click the below link to get access to the interview

https://medium.com//how-i-got-into-series-mustapha-babalola-868fa6616bb7

31/05/2022

ALL THAT YOU NEED TO KNOW ABOUT THE OGA SABINUS THREATENED LAWSUIT AGAINST GALA AND PEAK MILK.

Famous comedian and skit maker Chukwuemeka Ejekwu, also known as Oga Sabinus, has threatened to sue Friesland Foods, the makers of the Peak milk brand, and UAC Foods, the makers of the sausage roll brand Gala, over the unauthorised usage of his trademark. Friesland Foods and UAC Foods are both in the business of producing dairy products.
Below is all that you need to know about the legal notice.
Oga Sabinus, as he is fondly called, is demanding that Friesland and UAC pay him compensation and damages in the amount of one billion and one hundred million naira, respectively, for the use of the catchphrase "something hooge" in an advertisement posted on its social media handle and for the use of his picture in an ad campaign by both companies. Sabinus, through his attorney, issued a warning that he will file a lawsuit against the brands if they did not comply with the legal notice within two weeks of the date it was received.
A look at the court papers shows that the pre-suit notice dated May 27 2022, and signed by his lead counsel Mr Stanley Alieke, the content creator demanded a payment of N500m for the alleged unauthorised use of his intellectual property and another 500m for damages for the “emotional, physical, psychological and mental trauma our client has suffered for the trademark theft and the infringement of his intellectual rights property”.
In the notice, the comedian pointed out that a company belonging to Peak Milk, Friesland Food Wamco Nigerian PLC, used his trademarked slogan “Something Hooge” to advertise and promote their product, Peak Milk.

He pointed out that an advertisement posted on Peak Milk Nigeria's verified Instagram account milk on May 24 2020, used his slogan, which he had trademarked on November 26 2021, under the FILE NUMBER: NG/TM/O/2021/48316.
The legal notice stated, "Our client briefed us, and we believe the same to be accurate that your Company, Friesland Foods Wamco Nigeria Plc, used a trademarked slogan 'Something Hooge' for the promotion of your Peak Milk product."
The legal notice stated, "Our client briefed us and we believe the same to be true that your Company, Friesland Foods Wamco Nigeria Plc, used a trademarked slogan 'Something Hooge' for the promotion of your Peak Milk product."
It continued, “The advert which was made on the Peak Milk Nigeria verified Instagram page (peak_milk) was posted on May 24 2022, which was used to promote the Peak National Breakfast Week.”
“It will interest you to know that the phrase ‘something hooge’, which was popularised by our client, has been trademarked and legally reserved as his intellectual property by the Federal Ministry of Trade and Investment.”
“The post gathered massive traffic and engagements and attracted huge followership to your page, which only happened because the picture of our client was used for the promotion and advert.”
The content creator also threatened legal action against UAC Food Ltd, the company that produces gala sausage, for using his likeness and other intellectual products to advertise their product.

Sabinus revealed that UAC Food on Instagram posted on May 23 2022, with his “picture”. He further noted that the post, which was his cartoon likeness, was captioned, “the way I calculate everything in my life”.
The notice to UAC Foods read dated May 25 read, “Your company UAC Food Ltd. has been using the brand picture and other intellectual properties of Sabinus to make adverts for your Gala sausage roll without the consent or authorisation of our clients.”
He gave both companies 14 working days to meet his demands or meet him in court.
Source:
1. Skitmaker Sabinus sues peak for using trademark, something hooge. https://guardian.ng/life/skit-maker-sabinus-sues-peak-for-using-trademark-something-hoog. Accessed on 30th of May, 2022.
2. Why comedian Oga Sabinus slammed Friesland, UAC Foods with respective N1 billion, N100 million claims. https://nairametrics.com/2022/05/30/why-comedian-oga-sabinus-slammed-friesland-uac-foods-withrespective-n1-billion-n100-million-claims accessed on 30th of May, 2022.

20/05/2022

The Nigerian Senate passed the Arbitration and Mediation Bill ("the Bill") on Tuesday, May 10, 2022, repealing the Arbitration and Conciliation Act Chapter A.18, Laws of the Federation of Nigeria, 2004, which took effect on March 14, 1988. The President of the Federal Republic of Nigeria must now sign the bill.
With the ever-changing scene of international arbitration, international trade, and foreign investment, Nigeria was long overdue for a modern arbitration and mediation law that reflected the times' complexity. Understandably, a thirty-four (34) year-old statute is incapable of fully addressing today's complex arbitration challenges.
The following improvements are included in Bill's innovations:
1. If the material in an electronic communication is available and usable for future reference, it can now be used to construct an arbitration agreement.
2. When no number of arbitrators is given, the default is currently one (1) arbitrator.
3. When a party requests urgent relief, emergency arbitration is permitted.
4. The provisions on the issuing of interim measures of protection by courts and the recognition and implementation of temporary orders issued by a Tribunal were expressly incorporated.
5. It allows arbitrations to be consolidated.
6. It allows parties to connect together.
7. The recognition of foreign arbitral awards is explicitly codified.

08/04/2022

All that you need to know about Tax Avenue.