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Wednesday, July 08,
2020 / 13:17 PM / ICAN Notice to Members / Header Image
Credit: Ecographics
Find
below the Notice to Members, issued by Ahmed M. KUMSHE,
FCA; the Registrar/ Chief Executive of the Institute of Chartered Accountants
of Nigeria (ICAN) on July 06, 2020 in an update on Suit No: LD/3288GCM/19-CITN
VS ICAN
Notice
You would recall
that sequel to the disagreement over the interpretation of the Memorandum of
Understanding (MoU) and Terms of Settlement (ToS) executed in 2015 between our
institute (ICAN) and the Chartered Institute of Taxation of Nigeria (CITN).
CITN approached the High Court of Lagos State, praying the court for the following
reliefs:
AND FOR a
determination of the question below:
v Whether the Memorandum of Understanding and
the Terms of Settlement both dated February 12, 2015 between the CITN and ICAN
are valid, subsisting and binding on CITN and ICAN.
In the suit
instituted by CITN against the Institute of Chartered Accountants of Nigeria
(ICAN). CITN sought to enforce the Memorandum of Understanding and Terms of
Settlement, to the extent that Chartered Accountants must apply and obtain the
CITN practicing License before they can file Tax Returns for their clients with
the Federal Inland Revenue Service (FIRS).
We are happy to
inform you that on Tuesday, July 2, 2020, the Court in its considered Ruling,
delivered virtually via zoom, upheld the Preliminary objection of our Institute
and struck out the case against CITN, in favour of ICAN.
Hon. Justice S.A
Onigbanjo of the High Court of Lagos State declared CITN's suit an abuse of
court process and an embarrassment to the Judiciary.
Clearly, the
Implication of the above ruling is that the reliefs sought by CITN which
necessitated the suit in the first instance, failed.
As things stand
now, CITN is unable to enforce the memorandum and Terms of settlement to the
extent of compelling ICAN Members to obtain CITN's licence before filing Tax
returns with FIRS. The status quo remains, implying that ICAN Members do not
require CITN's licence before filing Tax returns with FIRS. CITN's suit
remains struck out and the reliefs sought by CITN are not entertainable.
The earlier ruling
at the Federal High Court in Suit NO. FHC/L/CS//125/2019 did not make
pronouncement on the memorandum and terms of settlement between ICAN and CITN.
Regulation 5 of FIRS Act is not reflected in the Judgement of the Federal High
Court. The Federal High Court judgement does not affect the status quo.
We will keep you
informed of further developments as they unfold.
Please, do continue
to stay safe, and rest assured that the Institute will continue to defend the
ICAN Act and its mandate.
Related
to the Suit - ICAN v CITN
1.
Federal High Court Judgment in the Case of ICAN v. FIRS and CITN
2.
Judgment Given in Suit Over CITN Stamp and Seal Practice Directive
3.
Practice Statement on CITN Stamp and Seal
4.
ICAN Objects To 3 Bills for A Chartered Institute of Forensic and
Investigative Auditors of Nigeria
5.
CITN Signs MoU With ANAN on Rights to Practice Taxation In Nigeria
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