CRPA Files Suit Against FCT-IRS, Calls Centralized Revenue Collection For Area Councils “Unconstitutional”

The group – the Centre for Reform and Public Advocacy (CRPA) – argued, in a statement on Tuesday, that the measure is unlawful, unconstitutional and illegal.

In the statement issued in Abuja by the group’s Head, Legal Unit, Kalu Agu Kalu, CRPA contended that the law establishing the FCT–IRS (the FCT-IRS ACT 2015) limits the powers of the service to collect revenues only on behalf of the Federal Capital Territory Administration (FCTA).

The group said it has filed a suit before the High Court of the FCT to challenge the legality of the policy with a view to preventing those behind it from engaging in unlawful act.

FCT-IRS’ Acting Chairman, Michael Ango had announced at the 2024 end of year media briefing in Abuja that his agency will, from 2025 be responsible for the collection of all revenues on behalf of the six Area Councils of the FCT.

Ango explained that the goal was to ease compliance by taxpayers in the FCT and improve transparency and accountability for all revenues’ collection.

He said that a similar arrangement was being worked out with the various Secretariats, Departments and Agencies in the FCTA, adding that the decision was in compliance with the directive by the FCT Minister, Nyesom Wike.

However, CRPA, in its statement, said:”For the purposes of clarity and emphasis, the six Area Council are not departments of Federal Capital Territory Administration, but a 3rd tier of government, constitutionally enshrined and established, and whose functions and powers are delineated by the same Constitution.

“While the Supreme Court had granted autonomy to Area Councils/Local Governments, it is laughable that Mr. Michael Ango, the Acting Chairman of the FCT – IRS seeks to undermine the pronouncement of the Supreme Court by usurping the powers and functions of the of the Area council, with a total disregard to the Constitution and the law.

“May we, at this juncture, advert the attention of the Acting Executive Chairman of the FCT – IRS to Section 2 of the Taxes and Levies (approved list for collection) Act, LFN, 2004, which makes the collection of revenue by an unauthorized persons as a criminal offence.

“Let us also use this medium to place it on record that the CRPA has already filed a civil suit against the FCT-IRS at the High Court of the FCT, Abuja, seeking injunctive reliefs against the FCT–IRS from collecting any revenue on behalf of the six Area Councils.

“Since this matter is sub-judice, the Acting Executive Chairman of the FCT–IRS should respect the law and maintain status quo pending the hearing and determination of the said case.”