Polaris Bank has approached the Niger State High Court in Minna, requesting the dismissal of a criminal charge brought against its Managing Director by the Niger State Internal Revenue Service. The charge pertains to the bank’s alleged failure to supply certain information about customers who applied for foreign exchange through the bank.
The Bank in its application, through its solicitors, raised a preliminary objection to the jurisdiction of the Niger State High Court to entertain the criminal charge filed against it, arguing that it is an abuse of court process.
The reason for this argument is that the subject matter of the criminal charge in Minna is already a subject of litigation at the Federal High Court Abuja between twenty-one (21) banks and sixteen (16) States of the Federation in Suit no; FHC/ABJ/CS/120/2023 BETWEEN ACCESS BANK PLC & 20 ORS VS ATTORNEY GENERAL OF ABIA STATE & 15 ORS. Polaris Bank Ltd argues that if the criminal charge in Minna is allowed to stand, then the eventual judgement in the suit before Federal High Court Abuja will be rendered nugatory.
Niger State Internal Revenue Service (NIRS) filed a First Information Report before a Minna High Court in case number NSHC/MN/18/24 against Polaris Bank and its MD for alleged failure to provide relevant information relating to tax by its customers.
The Court in Minna presided over by Justice Maimuna Abubakar had on Friday morning vacated the bench warrant issued for the arrest of the Branch Manager of Polaris Bank, Minna while she retained that of the Managing Director, over alleged failure of the bank to release tax information.
The charge reads: ‘Failure to Demand for Tax Clearance Certificate in Respect of Foreign Exchange Transactions Contrary to Section 85 (2) and (4) (d) and Punishable Under Section 85 (9) of the Personal Income Tax Act.
PARTICULARS OF OFFENCE
OMOKAYODE LAWAL (Managing Director, Polaris Bank Plc) and Polaris Bank Ltd, between the Month of January 2022 and December 2023 at Minna within the jurisdiction of this Honourable Court, failed to request for Tax Clearance Certificate from Applicants for the issuance of Foreign Exchange from your Bank, you thereby committed an offence contrary to Section 85 (2) and (4) (d) and punishable under Section 85 (9) of the Personal Income Tax Act.
The charge was filed on behalf of the Niger State Internal Revenue Service by Mohammed Ndayako SAN on May 14, 2024. However, an objection was filed and moved by Polaris Bank lawyer, Usman Sule SAN urging the court to either strike out or dismiss the charge.
In the accompanying affidavit to the application, Usman SAN stated the following facts as reasons why the charge cannot be sustained:
* The subject matter of this case is providing the Complainant/Respondent upon request with documents and information in respect of a list of all applications for foreign exchange and/or exchange control permission to remit funds outside transactions covering the period 2022 to 2023 as it relates to Niger State.
* The subject matter of the alleged crime in this suit is already a subject of litigation at the Federal High Court Abuja between twenty-one (21) banks and sixteen (16) States of the Federation in Suit no; FHC/ABJ/CS/120/2023 BETWEEN ACCESS BANK PLC & 20 ORS VS ATTORNEY GENERAL OF ABIA STATE & 15 ORS.
* That the 2nd Defendant/Applicant is the 11th Plaintiff in the above pending suit at the Federal High Court while the Attorney General of Niger State representing Niger State Government and her agencies and institutions including the Complainant/Respondent herein is the 13th Defendant.
* That the Complainant/Respondent herein is privy to the suit as the Attorney General of Niger State is representing Niger State Government and her agencies and institutions including the Complainant/Respondent herein in the above-named suit pending at the Federal High Court, Abuja.
* That the Attorney-General of Niger State is the Chief Law Officer of Niger State and was sued in that capacity as the 13th Defendant in the above suit at the Federal High Court, Abuja.
* That this case of the Complainant/Respondent herein against the Defendants/Applicants herein is a gross abuse of judicial process aimed at rendering the Suit no. FHC/ABJ/CS/120/2023 BETWEEN ACCESS BANK PLC & 20 ORS VS ATTORNEY GENERAL OF ABIA STATE & 15 ORS at the Federal High Court nugatory.
* The subject matter of the suit at the Federal High Court, Abuja borders on the power of the Niger State Government, its agencies and institutions to request from the banks, particularly, the 2nd Defendant/Applicant what they termed a crime in this case before this Honourable Court.
* This Honourable Court lacks requisite Jurisdiction to proceed to hear and determine this case during the pendency of the suit with Suit no. FHC/ABJ/CS/120/2023 BETWEEN ACCESS BANK PLC & 20 ORS VS ATTORNEY GENERAL OF ABIA STATE & 15 ORS at the Federal High Court, Abuja which is a challenge to the power of the Niger State State and its agencies or institutions to request for the documents in question.
* The Complainant/Respondent cannot claim to be independent from Niger State Government because it is one of the agencies of Niger State Government and by law under Niger State Government.
* There was no personal service of the Originating Process on the 1st Defendant/Applicant.
* That the infractions as alleged by the Complainant/Respondent is the responsibility of the Central Bank of Nigeria to deal with and not Niger State Government.
* The suit as presently constituted is an abuse of Court process and aimed at wasting the precious judicial time of the Court.
Meanwhile, Justice Abubakar has adjourned the case to a date that will be communicated later to all the parties by the court.
