THE CONSTITUTIONALITY OF THE POWER TO DISTRAIN FOR NON-PAYMENT OF TAX: INDEPENDENT TELEVISION/RADIO V. EDO STATE BOARD OF INTERNAL REVENUE IN PERSPECTIVE

Abstract

The realization of the power to distrain as an expeditious means of enforcing payment of tax has undoubtedly increased the tempo and drive for revenue generation by different tiers of government in Nigeria.  The apathy many Nigerians (including corporate bodies) show towards payment of tax coupled with the increase in government spending presumably led tax authorities and their advisers to dust up tax statutes to find legitimate ways of shoring up revenue accruing to the Federation and the States, including Local Governments.  This renewed effort, is however, not without perceived abuses, thus raising concerns in some quarters over the desirability or otherwise of retaining the power to distrain in our tax statutes. This paper looks critically at the recent decision of the Court of Appeal, Benin Division in the case of Independent Television/Radio v. Edo State Board of Inland Revenue, on the constitutionality or otherwise of the power to distrain the property of tax defaulters.  The paper also examines the issue of fair hearing as it relates to the procedure laid down by the relevant statute to enforce payment.  Finally, the paper proposes ways of achieving the tax authority’s objectives without encroaching on the tax payer’s rights.