The Federal High Court in Abuja has set aside a Tax Appeal Tribunal (TAT) ruling that ordered Abuja Electricity Distribution Plc (AEDC) to pay the Federal Inland Revenue Service (FIRS) N5.31 billion in alleged tax liabilities, citing bias and lack of fair hearing.
Delivering judgment on Monday, Justice Umar Mohammed held that the presence of a former FIRS official, Honourable Ajayi Julius Bamidele, on the tribunal panel that decided the case raised “a likelihood of bias,” rendering the proceedings invalid. He consequently nullified the December 14, 2023 tribunal judgment and ordered a retrial.
AEDC had approached the court seeking to set aside the TAT decision, arguing that enforcing payment of the alleged VAT and WHT liabilities dating back to 2013 would hinder its ability to supply electricity across Kogi, Nasarawa, Niger, and the Federal Capital Territory.
A central plank of AEDC’s appeal was that Bamidele, a member of the tribunal panel, had previously worked with the FIRS and supervised the tax audit team involved in assessing AEDC’s liabilities—an allegation supported by depositions from the company and KPMG Advisory Services.
Justice Umar noted that the FIRS failed to counter this claim, adding that natural justice forbids anyone from sitting in judgment over a matter in which they have had prior involvement. He ruled that the issue “goes to the root of jurisdiction,” and that any taint of bias invalidates proceedings, regardless of the correctness of the decision.
He dismissed the FIRS’ argument that AEDC should have raised the issue earlier, stating it was immaterial once bias was established. The judge held that a breach of fair hearing requires that the decision be set aside and the matter retried.
The court accordingly annulled the tribunal’s judgment and remitted the case file to the TAT for a fresh hearing.
The dispute traces back to a five-member tribunal decision led by Hon. Iriogbe Alice, which in 2023 mandated AEDC to pay N4.53 billion in VAT liabilities for 2013–2017, N780.3 million in WHT liabilities for 2013 and 2016, and an additional N100,000 in costs. AEDC has long disputed the assessments, arguing that the FIRS provided no lawful basis for the claims despite audits conducted alongside the EFCC.
Monday’s ruling resets the long-running tax battle between AEDC and the FIRS, with the matter now returning to the tribunal for determination.
