Nigerian court halts EFCC’s unauthorized VAT demands on Amadeus Marketing
A Federal High Court in Abuja has blocked the Economic and Financial Crimes Commission (EFCC) from demanding €3.2 million and $2.4 million in alleged VAT payments from Amadeus Marketing Nigeria Limited. The ruling clarified that the EFCC lacks the legal authority to assess or enforce tax liabilities, a role reserved for the Federal Inland Revenue Service (FIRS).
The dispute began when the EFCC served Amadeus with a VAT liability assessment, claiming the company owed €3,213,707.20 and $2,476,462.49. The agency argued that Amadeus and certain airline operators had been generating revenue in Nigeria for over 15 years without proper tax registration.
Amadeus challenged the assessment, leading to a court case where Justice Obiora Egwatu examined the EFCC’s powers. The judge ruled that while the EFCC can investigate financial crimes, its authority does not extend to tax assessments or demand notices. Sections 38(1) and (2) and Section 24 of the Money Laundering (Prevention and Prohibition) Act, 2022, were found insufficient to grant such powers. The court permanently barred the EFCC from pursuing further tax demands against Amadeus. It reaffirmed that only the FIRS—now called the Nigeria Revenue Service—holds the legal mandate to assess and enforce VAT obligations.
The ruling nullifies the EFCC’s VAT assessment against Amadeus and prevents future tax-related demands from the agency. The decision reinforces the FIRS as the sole authority responsible for tax collection in Nigeria.
