In a bold call to strengthen tax enforcement, Justice Hakeem Oshodi of the Lagos State High Court has urged the full activation and use of designated revenue courts to prosecute tax-related offences in the state. Speaking at the recently held Revenue Recovery Summit organized by the Lagos State Ministry of Justice, Oshodi expressed concern over the underutilization of these courts.
“I currently sit as a judge in a revenue criminal court, and I must confess, I have not conducted any trials. Yet, I’m fully ready to work,” Oshodi remarked.
Why Revenue Courts Matter
Justice Oshodi highlighted a troubling trend: many defaulting taxpayers rush to settle out of court once caught, fearing public prosecution and possible jail time. While this approach yields some revenue, it undermines the deterrent effect of the legal system.
The summit, themed “Speedy Dispensation of Revenue Cases in Court,” focused on strategies to improve enforcement, reduce case backlogs, and strengthen collaboration between the judiciary and tax authorities.
Key Takeaways from the Summit
1. Judicial Commitment
Justice Oshodi and other legal experts emphasized that the judiciary is ready to support tax enforcement—what’s needed is activation of the tools already in place.
2. Learning from South Africa
Oshodi cited South Africa’s aggressive stance on tax defaulters, where tax evaders are presumed guilty until proven innocent, urging Nigeria to adopt similarly firm measures.
3. Executive-Judicial Synergy
The need for improved cooperation between government agencies and the courts was echoed by several speakers, including Attorney-General Mr. Lawal Pedro (SAN).
“We have the tools. What we need is the will to use them effectively,” Pedro stated, referencing the Tax Administration Act 2025 and recent infrastructure improvements like the Tapa Commercial Courts.
Legal Complexities & Jurisdictional Hurdles
Former Lagos Attorney-General Mr. Ade Ipaye gave a deep dive into the legal and constitutional challenges surrounding tax enforcement:
- Federal vs. State Jurisdiction: He argued that personal income tax is a state matter, and should remain under state court jurisdiction—not the federal Tax Appeal Tribunal (TAT).
- Constitutional Grey Areas: Ipaye raised concerns that the TAT could face similar legal challenges as the now-defunct VAT Tribunal.
- Need for Independent Tax Boards: He also criticized states relying on private consultants instead of establishing robust Internal Revenue Boards, weakening enforcement capacity.
What This Means for Taxpayers & Businesses
If you’re a high-net-worth individual, business owner, or taxpayer in Lagos, here’s what you should know:
✅ Enforcement is intensifying – with renewed political and judicial will, revenue courts may soon see more cases.
✅ Out-of-court settlements won’t always be an option.
✅ Documentation is key – ensure your records are complete and compliant.
✅ Tax audits may increase – be proactive, not reactive.
Our Perspective: Time to Prepare
At [Your Tax Consulting Firm Name], we believe the activation of revenue courts marks a turning point in Nigeria’s tax enforcement landscape. With greater scrutiny and faster legal processes, individuals and businesses must prioritize tax compliance, documentation, and legal readiness.
Need Guidance?
We assist clients in:
- Preparing for tax audits
- Resolving disputes efficiently
- Ensuring full compliance with Lagos State and Federal tax laws
- Navigating complexities around the Tax Appeal Tribunal and Revenue Courts
Book a consultation today to stay ahead of the curve.
For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.
