The Attorney-General of the Federation, Lateef Fagbemi (SAN), and the Minister of Interior, Olubunmi Tunji-Ojo, have asked the Federal High Court in Abuja to dismiss a lawsuit challenging the proposed expatriate taxation policy in Nigeria.

The ministers made this request in their preliminary objections, filed separately before the presiding judge, Justice Inyang Ekwo.

The plaintiff, the Incorporated Trustees of New Kosol Welfare Initiative, filed the suit in an ex-parte motion marked FHC/ABJ/CS/1780/2024.

The motion was filed through a legal team led by Paul Atayi, suing the Minister of Interior and the Attorney-General of the Federation as the 1st and 2nd defendants, respectively.

The group seeks an order of interim injunction restraining the defendants from implementing the new expatriate taxation policy, the “Expatriate Employment Levy,” pending the hearing and determination of the motion on notice.

In its affidavit, deposed by Programme Implementation Coordinator, Raphael Ezeh, the plaintiff asserts that the Federal Government introduced the proposed taxation policy on February 27, 2024.

Ezeh argued that the policy is detrimental to Nigeria’s economy, likening it to a chokehold against the nation’s growth.

According to KPMG and other analysts, the proposed policy mandates that companies employing foreign expatriates pay the following Expatriate Employment Levy:

“For expatriates at the director level: $15,000, equivalent to N23,000,000 per annum at current exchange rates. For expatriates at non-director levels: $10,000, equivalent to N16,000,000 per annum.”

Ezeh further highlighted additional regulations, including severe penalties for non-compliance, such as: “A penalty of up to five years in prison and/or ₦1m for inaccurate or incomplete reporting. N3m fines for failure to file the EEL within 30 days or for non-registration of an employee. A N3m penalty for failure to renew the EEL before its expiry.”

At the resumed hearing on Monday, plaintiff’s counsel, Atayi, informed the court that the matter was scheduled for hearing the Attorney-General’s preliminary objection.

He added that the Minister of Interior, despite being served, had not been represented. Atayi also confirmed he had responded to the Attorney-General’s preliminary objection.

Justice Ekwo informed Atayi that the Minister of Interior had filed a preliminary objection on March 14, which Atayi claimed not to have received.

Justice Ekwo instructed Atayi to apply for a copy of the objection from the court registry and respond accordingly to expedite the matter.



https://punchng.com/fg-opposes-suit-challenging-proposed-expatriate-tax-policy/