The Federal High Court in Abuja has nullified the Economic and Financial Crimes Commission’s demand for €3.2 million and $2.4 million in alleged tax liabilities against Amadeus Marketing Nigeria Limited.
The ruling, delivered by Justice Obiora Egwatu and contained in a Certified True Copy of the judgment seen by Naijaonpoint on Monday, held that only the Federal Inland Revenue Service (now the Nigeria Revenue Service) has the statutory authority to assess and enforce Value Added Tax obligations.
The decision settles a legal dispute between Amadeus’ legal team, comprising Ogunmuyiwa Balogun and Babatunde Ige and the anti-graft agency over whether the EFCC can lawfully issue tax assessment and demand notices, and clarifies the limits of the Commission’s powers in tax-related investigations.
According to the judgment, the dispute before the court was not about the EFCC’s general powers to investigate financial crimes, but whether those powers extend to assessing and demanding VAT payments.
“Surprisingly, by a letter dated October 8, 2024 (Exhibit A4), the EFCC served the Plaintiff with a VAT liability assessment purportedly carried out by the EFCC, where it assessed the Plaintiff’s VAT liability at €3,213,707.20 and $2,476,462.49 and labelled the same as expected value added tax liability,” Amadeus’ lawyer told the court.
“The intelligence revealed that the Plaintiff and some airline operators are generating revenue in Nigeria but are not registered for tax purposes in Nigeria, despite operating in the country for over 15 years,” the EFCC’s counsel, Mrs.A. Amedu argued in defence of the Commission’s actions.
In resolving the case, Justice Egwatu examined the statutory provisions relied upon by the EFCC to justify its demand.
He held that Sections 38(1) and (2) and Section 24 of the Money Laundering (Prevention and Prohibition) Act, 2022, cited by the EFCC, do not confer powers to assess or demand tax payments.
The legal dispute arose from overlapping actions by tax and law enforcement authorities over Amadeus’ operations in Nigeria.
According to court filings, the Federal Inland Revenue Service had already carried out tax audit exercises on the company covering the 2015–2017 and 2018–2023 financial years and issued additional assessments, which Amadeus complied with.
On April 23, 2024, the EFCC invited Amadeus to a meeting as part of an investigation into the company’s tax remittances from 2010 to date, including years previously audited by the FIRS.
Amadeus’ Country Manager, Mr. Yann Gilbert, honoured the invitation, submitted documents, wrote a statement, and was later released on bail.
The EFCC subsequently issued a demand notice on October 8, 2024, directing the company to remit the assessed sums to the EFCC or designated Federal Government accounts by October 29, 2024.
Amadeus challenged the action in court, arguing that the EFCC lacked statutory authority to assess VAT or issue a tax demand.
The ruling reinforces the legal separation between tax administration and criminal investigation in Nigeria.