Chief M. A. Okupe v. Federal Board Of Inland Revenue (1974)

LawGlobal-Hub Lead Judgment Report

G. B. A. COKER, J.S.C.

This appeal involves an application by one Chief Matthew Adekoya Okupe for the prerogative orders of Certiorari and Prohibition against the respondents, The Federal Board of Inland Revenue and the Chief Investigating Officer of the Board. In the High Court, Lagos, the applicant, now appellant, had moved the court for an order:

“(1) For leave to apply for an Order of Certiorari to remove into this Honourable Court for the purpose of being quashed the decisions made by or on behalf of the Federal Board of Inland Revenue and communicated to the applicant by letter. dated 8th July, 1970 whereby it was ordered that the applicant should pay additional assessment in respect of personal income tax for the years of assessments 1960/61, 1961/62, 1962/63, 1963/64, 1964/65, 1965/66, 1966/67 and 1967/68.

(2) An Order of Prohibition prohibiting the Federal Board of Inland Revenue from proceedings or further proceedings with any steps to enforce payment of the said additional assessment or (in the alternative) such of them as this Honourable Court finds to be illegal. And that all necessary and consequential directions be given.

(3) Directing the further proceedings on the assessments aforesaid to be stayed pending the final determination of this matter or until further order, and

(4) Such further or other orders as this Honourable Court may deem fit to make.”

A statement pursuant to the relevant Rule of Court was duly attached to the application and the said statement shows the grounds upon which the application was based as follows:

“1. The additional assessments complained of were made without jurisdiction because:

(a) at the time of such assessments the Federal Board of Inland Revenue has no powers in law to make the assessments complained of;

and

(b) in the alternative to (a) the assessments aforesaid were not made on the basis of or as a result of any discovery of opinion such as the provisions of section 31 of the Personal Income Tax (Lagos) Act, 1961 required.

2. The additional assessments aforesaid are illegal and null and void because they were not made by the Federal Board of Inland Revenue itself as required by law, but were made by or on behalf of the Chief Investigating Officer of the Board.
3. The additional assessments aforesaid are illegal and null and void because, contrary to law, the notices of assessments and the notices of refusal to amend the assessments aforesaid were served simultaneously on the applicant.
4. In the alternative to 1, 2 and 3 a period of six years having expired since the 1960/61, 1961/62, 1962/63, and 1963/64 and 1964/65 years assessment the additional assessments in respect of those years have been made in excess of the jurisdiction conferred by section 31 of the Federal Income Tax (Lagos) Act.”

The appellant also swore to an affidavit to accompany his application and paragraphs 2, 5, 6 and 7, which are directly relevant to the present decision, are as follows:

“2. That I have already duly paid tax for which i was assessed for the 1960/61, 1961/62, 1962/63, 1963/64, 1964/65, 1965/66, 1966/67 and 1967/68 years of assessment.

5. That finally, a letter dated 8th July, 1970 was addressed to me by the 2nd respondent and a true copy thereof is attached and marked Exhibit B.
6. That the documents said to be enclosed in Exhibit B are attached herewith and marked Exhibits 1 to 27.
7. That to the best of my knowledge information and belief all actions and decisions on this matter were taken either by or on behalf of the 2nd respondent who is a servant or agent of the first respondent.”

As indicated in paragraph 6 of the affidavit of the appellant, there were attached to the application eight copies of notices of assessment of income tax and nineteen copies of notices of refusal. All the notices of assessment of tax and notices of refusal were dated the same day, that is the 20th June, 1970 and were all apparently approved by the same functionary, who signed as such on the same day, i.e. the 20th June, 1970.