Tax Tribunal Dismisses Continental Oil Bid to Stop Bayelsa Tax Appeal
The South-South Zone of the Tax Appeal Tribunal (TAT), sitting in Benin City, has dismissed an application by Continental Oil and Gas Limited seeking to stop a tax appeal instituted against it by the Bayelsa State Board of Internal Revenue (BSBIR). The Tribunal held that the company’s objection lacked merit and ruled that the substantive appeal should proceed to hearing and determination on its merits.
In a decision delivered by a panel chaired by Hon. Anselm Unimna, the Tribunal refused to declare the appeal incompetent, clearing the way for the Bayelsa State Board of Internal Revenue to continue with its case against the oil and gas company.
Continental Oil and Gas Limited had asked the Tribunal to strike out the appeal on the ground that it was not served with a Notice of Assessment or Demand Notice before the proceedings were instituted. The company argued that the notices relied upon by the Board were addressed to Conoil Plc and Conoil Producing Limited, which it maintained were separate legal entities from Continental Oil and Gas Limited.
The company contended that the failure to serve it with the relevant statutory notices made the appeal incompetent and deprived the Tribunal of the jurisdiction to hear the matter. It therefore urged the Tribunal to strike out the proceedings.
However, the Bayelsa State Board of Internal Revenue opposed the application, arguing that the objection amounted to an abuse of process. The Board maintained that an error in the name of a taxpayer does not automatically invalidate an assessment where the intended taxpayer can be clearly identified.
The Board also informed the Tribunal that it had earlier obtained leave to amend its Notice of Appeal, accompanying processes and Demand Notices to reflect the correct name of Continental Oil and Gas Limited. It relied on the amendment order to argue that the issue raised by the company had already been addressed.
In its ruling, the Tribunal held that the application did not amount to an abuse of process. It explained that where an earlier application was struck out rather than dismissed, the affected party could bring the application again.
However, the panel affirmed that its earlier order of November 13, 2023, granting the Board permission to amend the Notice of Appeal and related documents, remained valid and binding. According to the Tribunal, the amendment corrected the error in the respondent’s name and reflected the Board’s original intention to assess Continental Oil and Gas Limited.
The Tribunal further held that under the applicable tax laws, an assessment does not become invalid merely because of an error in the taxpayer’s name, provided the person intended to be assessed can reasonably be identified. It found that the amendment order, together with the Board’s clear intention to assess Continental Oil and Gas Limited, provided sufficient reason for the substantive appeal to proceed.
Consequently, the Tribunal dismissed the objection filed by Continental Oil and Gas Limited, paving the way for the Bayelsa State Board of Internal Revenue’s appeal to be heard on its merits.
The panel was made up of Hon. Anselm Unimna (Chairman), Hon. Asoro Elvis Osariuyimen, Hon. Prof. Ofiafoh Eiya, Hon. Sunday A. Aborisade and Hon. Olayinka Tajudeen Adewale.
