Protocol observed
Members of the Press,Ladies and Gentlemen,It is my honour to welcome you all to this historic occasion where another pace will be set by the administration of President Mohammadu Buhari.
2. Indeed, the setting up of this Inter-Ministerial Committee on recovery and audit of Stamp Duty is a practical expression of this administration’s will to set the record straight.
3. You may all recall that recently the Finance Act 2019 was passed into law pursuant to the assent of His Excellency, the President of the Federal Republic of Nigeria, Muhammadu Buhari. This law indeed provides some clarification on Nigeria’s tax law.
4. Let me by way of background state that the collection of Stamp Duty in Nigeria dates back to 1939 as introduced by the then British Colonial Government. Stamp Duties are basically taxes paid to the Federal or State Government on documents (also known as instruments) such as Conveyances on Sale, Bills of Exchange, Promissory notes, Agreements, Contracts or documents such as Letters and Certificates of administration, Instruments of Apprenticeship and Insurance Policies amongst others. The payment of Stamp Duties is enabled by the Stamp Duties Act 1939 (SDA), as amended by numerous Acts and various resolutions and contained in the Laws of the Federation of Nigeria. The SDA also provides a list of documents in its Schedule and the duty payable on each of them.
5. S. 4(1) & (2) of the Stamp Duties Act empowers the Federal and State Government to impose, charge, and collect stamp duties in different circumstances. The Federal Government has the sole authority to impose, charge and collect Stamp Duties in respect of documents relating to matters between a Company and an individual, group or body of individuals. The State Government on the other hand has authority to collect Stamp Duty in respect of documents executed between individuals or persons at such rates imposed or charged as agreed with the Federal Government.
6. Stamp Duty is one of the matters reserved to the Federal Government in the Exclusive Legislative List, under the 1999 Constitution of the Federal Republic of Nigeria (as Amended). It means that the National Assembly in partnership with the Executive arm of Government have the important responsibility of ensuring that the laws are constantly reviewed to bring them into conformity with the reality of the day.
7. Remarkably the FIRS Act is a complementary provision to the Stamp Duties Act. It follows therefore that on the strength of the provision the Federal Inland Revenue Service (FIRS) establishment Act, the FIRS is conferred with powers to administer (including perform audit exercise) and collect all taxes and levies due to the Federal Government and account for them. This is amplified by the provisions of the Finance Act 2019 which state that:“The Federal Inland Revenue Service shall be the only competent authority to impose, charge and collect duties upon instruments specified in the Schedule to this Act if such instrument relates to matters executed between a company and an individual, group or body of individuals.”
8. Let me at this junction state that following the inadequacies in operation of Law and exercise of authority on stamp duty certain backlog of generated revenue were left unaccounted for thereby transforming into a matter of recovery for the Federal Government of Nigeria.
9. Consequent upon this predicament, the Office of the Honourable Attorney General of the Federation and Minister of Justice is compelled to activate mechanism for recovery in order to ensure that the Federal Government is not short changed. As a matter of public interest, the Office of the Honourable Attorney General of the Federation and Minister of Justice must ensure that all monies collected by various entities are recovered, accounted for and remitted to the appropriate account of the Government. Also note that the Stamp Duty Act was categorical on recovery powers of the Honourable Attorney General of the Federation and Minister of Justice. This fact is buttressed by the provisions of Section 111 of the Stamp Duty Act which states that ‘‘ all duties, fines, penalties and debts due to the Government of the Federation imposed by this Act shall be recoverable in a summarily manner in the name of the Attorney General of the Federation or the State. Accordingly all agencies with relevant mandates are brought on board to collaborate on the recovery and audit of stamp duty.
10. On this note I wish to implore the Inter-Ministerial Committee to work with the relevant agencies in accordance with extant laws and regulations. I also urge the Inter-Ministerial Committee to conduct this recovery and audit of Stamp Duty with ethics in order to protect the best interest of Nigeria as a country. It is also hope that the proceeds from this exercise will be a source of additional revenue for the country.
11. I must however warn that the task before the Inter-Ministerial Committee is enormous one. Thus, much is expected from the Committee, I therefore wish the Committee all the best and the guidance and protection of the Almighty in discharging this responsibility. Thank you very much.
ABUBAKAR MALAMI, SAN
Honourable Attorney General of the Federation and Minister of Justice
30th June, 2020
