Why do they really have to do this?

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New Lagos State Local Government Approved Taxes/Levies Law
« on: October 15, 2010, 12:42:45 PM »




Legal News

Effective 1st September 2010, the Honourable Minister for the Federal Ministry of Commerce and Industry has, in the exercise of his duties as provided for in Section 45(1)(e) of the Trademarks Act, approved an upward review of the fees charged for Trademark, Patent and Design registrations at the Trademark, Patent and Designs Registry.


INTRODUCTION

The controversy over the division of the taxing powers of the three tiers of government with the resulting multiple taxation thereof remains unabated in a Nigerian economy that seeks to improve and encourage existing businesses while attracting new direct foreign investments. Cases of the indiscriminate imposition of taxes and levies particularly by the local government councils, who are left with the least revenue from the federation account, remain abound.

To address the above problem and assist businesses, the Lagos State Government recently passed into law, the Local Government Levies (Approved Collection List) Law to among other things:- (a) prescribe the levies that can be imposed and collected by Local Government Councils in Lagos State and (b) to regulate the administration of such prescribed levies in Lagos State.

The effort of the Lagos State Government, through the above mentioned law, is to address complaints, especially from the private sector, over the unlawful collection of levies with the resulting multiple taxation, and also to address various superior Courts of record decisions that held that the existing local government laws, on levies that were collected by some Local Governments in the country, were unconstitutional, null and void.

This Alert will provide you with a synopsis of one of such Superior Courts of record decisions on this vexed issue with a further synopsis on the provisions of the new Lagos State Local Government Levies (Approved Collection List) Law which took effect from 12th July 2010.

1st Synopsis – Eti-Osa Local Government v. Rufus Jegede & Anor - CA/L/453/2002.

The Respondent in this appeal, at the Lower Court, challenged the competence of the Appellant Local Government Council to make a law imposing taxes and levies that are outside the provisions of the Fourth Schedule to the 1999 Constitution and also outside the provisions of Part 111 of the Taxes and Levies (Approved List for Collection) Act, 1998. The Lower Court held that the Appellant Local Government Council had no legislative powers of its own to impose or determine taxes and levies which are outside the enabling 1998 Taxes and Levies (Approved List for Collection) Law. Where however there exist some residual legislative power to collect certain taxes and levies, such residual legislative power must be exercised in conformity with the provisions of the 1998 Federal law, i.e. the Taxes and Levies (Approved List for Collection) Act, 1998.

The Appellant was dissatisfied with the decision of the Lower State High Court and appealed, as was its right, to the Court of Appeal. The Court of Appeal, in its unanimous decision, upheld the decision of the lower State High Court and held that the inherent power of any tier of government to legislate on and impose any form of tax or levy cannot be left at large, or at the whim and caprice of any tier of government, but according to the existing laws of the Federal Republic of Nigeria. The Court of Appeal also, obiter dictum, reiterated the age long principle that “...... over taxation resulting from lessez-affaire tax doctrine could be counter productive.”

2nd Synopsis - Lagos State Local Government Approved Levies for Collection Law, 2010

This Law authorises all Local Government Councils with their Local Government Development Authorities or any other administrative unit established by Law at the local government level of the State to collect any of the following levies which are enumerated in the Schedule to this Law:-

(1) Shops and kiosks rates.
(2) Approved open market levy.
(3) Tenement rates.
(4) Licensing fee for sale of liquor.
(5) Slaughter slab license fee in abattoirs under local government control.
(6) Marriage, birth and death registration fees.
(7) Street naming registration fee.
(Cool Motor Park levy (Including Motor cycles and Tri-cycles).
(9) Parking fee on local government streets or roads as may be approved by
the State Government.
(10) Domestic animal licence fee (Excluding poultry farmers).
(11) Licence fees for bicycles, trucks, canoes, wheelbarrows and charts
(other than a mechanically propelled trucks).
(12) Radio and Television licence fee (excluding radio and television in
motor vehicles, transmitters and other communication equipment)
(13) Public convenience, sewage and refuse disposal fees.
(14) Cemetery and burial ground permit fee.
(15) Permit fee for private entertainment and merriment in public places
(excluding roads and streets).
(16) Wharf landing fees.

Subject to Section 13 of this law, no levy shall be charged and collected by a Local Government Area or by a Local Government Development Authority save or except for the levies enumerated above.

To ensure that the disparity or differences in the rates of the levies charged by each Local Government Authority in comparison to other Local Government Authorities is minimised, the State Joint Revenue Committee is enjoined to carry out a periodic review of the rates charged and issue directives that will seek to harmonise the rates as closely as possible to each Local Government Authority’s area as possible.

To further ensure transparency, which leads to greater tax compliance, each Local Government Revenue Committee is enjoined to publish at a conspicuous place in all revenue offices of the Local Government Authority, a chart of the approved list of levies with the applicable rates, and the expected time of payment of these levies.

To address the controversy over the appointment of private tax consultants, this law requires that private tax consultants can only be engaged by a local authority where such an authority does not have the personnel with appropriate knowledge or skill to optimally administer the levy or where two or more local authorities by mutual agreement, delegate the authority to administer any levy to a common private tax consultant whether or not the position of such a private tax consultant is established by a law of the Lagos State Government.

The collection of the scheduled approved levies by any other unauthorised person shall be unlawful and punishable under this Law, as highlighted hereunder.

This Law further seeks to make unlawful the erection of road blocks and road closures by any Local Government official purportedly for the purpose of collecting the approved list of levies.

OFFENCES

Any person who collects or attempts to collect any levy that is not listed in the Schedule to this Law or does so without due authority and identification, or mounts a road block, or causes a road or street to be closed for the purpose of collecting any levy commits an offence and shall be liable on conviction to pay a fine of N500,000.00 (Five Hundred Thousand Naira) only or to imprisonment for a term of three (3) years or to both the fine and the term of imprisonment.

It is equally an offence for any person or agency to demand from any other person an amount in excess of the applicable levy or to fail to remit the revenue collected when due, or who withholds such revenue for his own use, or renders a false return or defrauds any person or embezzles any money or steals or misuses Local Government Authority documents, or compromises on the assessment or collection of any levy, or commits any of these offences which shall on conviction attract a penalty of five hundred percent (500%) of the sum in question and a term of imprisonment for three (3) years.

Where the offending person is armed with an offensive weapon or causes injury to any officer or authorised agent of the Local Government Authority in the performance of their duties, this offence on conviction attracts a term of imprisonment of three (3) years. Where injury results from this felony, the term of imprisonment on conviction is five (5) years. Aiding and abetting the contravention of the provisions of this Law attracts a fine equivalent to 400% (Four Hundred Percent) of the sum in question and imprisonment for a term of two (2) years. The impersonation of the character of an authorised revenue agent shall in addition to any other punishment enumerated herein attract a fine of Two Hundred and Fifty Thousand Naira (N250,000) or a term of imprisonment of three years or to both the fine and the term of imprisonment.

Conclusion

There is a rather curious provision at the end of the Lagos State Local Government Levies (Approved Collection List) Law, 2010 and this is Section13. Section 13 of this Law provides as follows: “Nothing in this Law shall be construed as prohibiting a Local Government Authority from enforcing penalties stipulated for breach of its bye-laws or charging fees as may be approved by the State Joint Revenue Committee for the use of the Local Government properties, public utilities established and maintained by the Local Government or Services rendered by the Local Government or its officials to particular individual and organisation.

The commendable effort of this law to bring clarity and certainty to what taxes and levies Local Government Authorities are permitted to collect in Lagos State may be compromised by the above Section 13 of this same Law.
Section 13 does not follow the decision in the decision of Eti-Osa Local Government Area v. Rufus Jegede (supra) where the Court of Appeal held that the taxing power of any tier of government cannot be left at large or at the whim and caprice of any tier of Government but according to the provisions of the 1999 Constitution and the 1998 Taxes and Levies (Approved List For Collection) Act. The amendment or outright expunging of Section 13 of this law is highly therefore recommended.

The second comment must be that save for Section 13 of this Law, it is not immediately discernable what new practical mechanism are in place or will be put in place to re-orientate the correct implementation of this Law in Lagos State to serve as an equitable model for other States in the federation, to emulate.


DISCLAIMER NOTICE: This Legal Alert is a free educational material, for your general information and enlightenment ONLY. This Alert, by itself, does not create a Client/Attorney relationship. Recipients are therefore advised to seek professional legal counselling to their specific situations when they do arise. Questions, comments, criticisms, suggestions, new ideas, contributions, etc are always welcomed. This Legal Alert is protected by Intellectual Property Law and Regulations and is reproduced by Proshare Nigeria Limited under permission for the Proshare online investment community. Oserogho & Associates [contactus@oseroghoassociates.com]
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culled from proshare

I just read through the link someone posted. The "law" says "Permit fee for private entertainment and merriment in public places". The question to ask is this "where did the birthday party take place?", if it took place in your compound "is your compound a public place?". But i think it could be another thing entirely if you had loud speakers on.

The question the school need to answer are:

1. How did this students get admission in the first place?

2. How come they are in possession of school property if they were actually had illegal admission. To have be in possession of school property means they are in the school database as legally admitted students.

3. Why did it take the school this long to detect that there are students with illegal admission?

I believe most of the so called illegal students didn't even know they were illegally admitted. The school management of the school itself need to sack themselves it it had to take them 4 years to know that a student was illegally admitted.

Goodness!!!, waste and corruption runs in the blood. Niger Delta is still going to be crying till next millennium if we continue in this mess.

Gosh!

maclatunji:

I have read a lot of ish on Nairaland but right now yours is topping the charts- unbelieveable!

Classic!

Funny and cute. The awkwardness (against waywardness) the two of you experienced it is a beautiful thing to be able to joke about. #Moreblessing.

You are right. Virginity does not equal virtue but there is a BIG virtue in being a virgin before marriage.

I got married in September of 2010. I was in my early 30s. Myself and my wife, who was in her late 20s, had never Were Intimate. For both of us, the week after the wedding was a great time. Till now we both joke and laugh about what happened. I was looking for the hole for the whole week and she couldn't help either. We were complete novice. I remember her screams. It was just clumsy.

The Joy in the whole experience was that we liked the fact that we learned from each other. Today, I never have to look for the hole. My joystick just slides in or should I say her womanliness just grabs it. It's always a great experience and both of us loved the fact that we met each other as complete novice when it came to sex. I respect and appreciate her for keeping herself for me. It just makes me love her the more.

But the fact that we were both virgins does not make us better than those who were of who are not. Virginity does not equal virtue. However, it pays to wait. Some might disagree but it still pays to wait. Nevertheless, one could still meet a non virgin with a blessed heart and even more virtuous than a virgin.

So @poster. Waiting is never and would never be outdated.

webdezzi:

i wonder ooo. Anyway, thats what i expect him to say and not prophecy doom to his country.

Well!, the country is already heading to doom with the way its presently governed with or without the "prophecy doom". The whole country needs overhaul

I think the site is simple and beautiful, would probably love to see more contents - videos and sounds, added

moderatorr:

unfortunately,
a good website does not make a good man!

A pastor who contested elections alongside a terrorist!

'give your life to christ . . .'
he must have said it to many people, but couldnt preach this to buhari.

Especially when he knew about the 'wild wild north' plan to murder innocent (christian)youth copers.

After the mob action, that vampire kept mute for weeks! Even longer than ayotallah buhari himself!

When he finally came spoke, what did he say? 'bla bla bla currupt leaders bla bla bla'.

From your assessment of this bakare,
do you think he would raise alarm to the federal government if he discovers a plot by boko haram to assasinate bill gates on his visit to nigeria? Me nah think so.

He is a bad lawyer, mentally challenged pastor,fake prophet, good terrorist.

Somebody give me a pistol.

OK, we've heard you. But this is about a "your thoughts" on a site, not baseless allegations that can't be substantiated.

Am not impressed by our obsession on what this man says. Even baba lawos and witches can make "accurate" predictions. This whole thing for me is a mind game. The man is either looking for a way to draw more people to his church or a way to get NFF and Super eagles to bow before his temple.

Abeg, make una leave Mr President alone, Cant you all see that he is performing,

and Cameron is even coming to commission Boko Haram, Floods, Labour's warning Strike

Wow!, @OP how did you get your education?, at least Nigeria can afford a scholarship board that would send most of the Almajiris for such education so as to reduce our problems in the North.

Kudos

Some of us already know this government is heading nowhere. It would be disgusting to me for Buhari to accept anything from a PDP led government.

677ano:

What a myopic individual are you saying there are no credible serious Nigerians? the scales need to fall of your eyes for you to see what Buhari stand for. You did not learn from the last election violence?

What exactly are you driving at? Name ONE politician in PDP that is as credible as Buhari. And please don't even think of linking Buhari to the post electoral violence. Those who are behind it know themselves and they would never think of associating Buhari to it. I would really be glad if GEJ's government would attempt to prosecute Buhari or CPC for the election violence. But they would not cos they know the truth would come out and we would know those individuals or group behind all those senseless killings in the north.

OMG .

Please what is the implication of this to inbound flights into Nigeria. I booked my flight ticket to be in Nigeria on Monday.

Infact, I just remembered I was one of the earliest fan of GEJ on FB. Pat Utomi was the first to mention that GEJ had heeded his advice and was now on FB and asked his fans to like the GEJ FB page. I believe even Utomi was hopeful that GEJ was going to make a difference, but this man has broken everybody"s heart

AWAY GOES GEJ AND HIS PDP!!!

Beaf:

How can someone who siezed power by coup bring true federalism? Does it make sense? Do you really think deep down that Buhari is cerebral enough to grasp the concept? Or diplomatic enough to sell it?

GEJ's manifesto promises true federalism, and I believe him. Thank you.
He is cerebral, diplomatic, cool and calm. His chances of success with such a project are way higher than Buhari's.

This man is already in power and has not done anything meaningful that points to what he says he would do if elected. Beaf, would you sign or award a new contract to a person who is already reneging on a current contract?

Am pretty sure of one thing. GEJ can never and would never be able to deliver. Even if he wants to, PDP would not let him. It is in there nature to kill, steal and destroy the hope on Nigerians