Appeal Court Affirms EFCC’s Authority to Probe Tax Evasion
The Abuja Division of the Court of Appeal has ruled in favor of the Economic and Financial Crimes Commission (EFCC), affirming its authority to investigate and prosecute cases of tax evasion. The judgment strengthens the Commission’s collaboration with other government agencies, including the Federal Inland Revenue Service (FIRS).
Justice Balkisu Bello Aliyu delivered the verdict in a case involving the EFCC and Insurance Resourcery and Consultancy Service Limited. The ruling was disclosed in a statement issued by the EFCC on Thursday.
The appellate court’s decision overturns an earlier ruling by Justice Taiwo O. Taiwo of the Federal High Court, which had held that the EFCC lacked the legal authority to probe tax-related offenses.
The original suit was filed by Insurance Resourcery and Consultancy Service Limited, challenging the EFCC’s invitation and investigation of its officials over suspected tax evasion. The company argued that the Commission acted beyond its legal jurisdiction.
To support its claim, the company cited various provisions of the FIRS Act, asserting that tax matters fall solely within the purview of the Federal Inland Revenue Service.
Justice Taiwo of the trial court agreed with the company, concluding that the EFCC could not extend its money laundering investigations to include tax evasion, which was considered a “predicate offense.”
Unsatisfied, the EFCC appealed the decision, referencing Section 46 of its enabling Act and presenting five grounds for appeal. One key issue raised was whether the Commission had statutory power to investigate tax-related offenses linked to money laundering.
In her ruling, Justice Aliyu stated that the lower court erred in limiting the EFCC’s powers and clarified that both the EFCC and FIRS Act explicitly support inter-agency collaboration in tackling tax evasion. She affirmed that the Commission’s authority included investigating offenses where tax evasion is a predicate element.
Ultimately, the Court of Appeal unanimously overturned the Federal High Court’s 2022 judgment. The panel, comprising Justices Balkisu Bello Aliyu, Adebukunola Banjoko, and Okon Efreki Abang, allowed the EFCC’s appeal and reinstated its investigatory powers on tax evasion matters.
