17 Private Jet Owners Drags Federal Government Over 30bn Tax Payment.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp

Owners of foreign-registered private jets, comprising top business moguls, leading commercial banks and other rich Nigerians, have dragged the Federal Government to court seeking to prevent the government from grounding their planes for allegedly refusing to pay import duty on the jets.

The Federal Government had last November approved the decision of the Nigeria Customs Service to ground 91 private jets belonging to some wealthy Nigerians over their alleged refusal to pay import duties running to over N30bn.

As such, following a presidential approval, the NCS in a letter directed the Nigerian Civil Aviation Authority, the Federal Airports Authority of Nigeria, and the Nigerian Airspace Management Agency to ground the affected private jets with immediate effect.

But owing to issues bothering on inter-agency rivalry and disagreements, the relevant government agencies could not ground the private jets.

However, in the past few months, the Customs has been making underground moves to perfect the process of grounding private jets whose owners failed to pay the import duty, multiple sources close to the development confirmed to The PUNCH on Tuesday.

17 jet owners

Also,  further findings by our correspondents over the weekend revealed that at least 17 private jet owners had gone to court to stop the Federal Government from implementing the order.

According to the court papers seen by The PUNCH, the jet owners are seeking a judicial review as to whether it is lawful for them to pay the controversial import duty on their private jets or not.

The jet owners had sued the government using the foreign shell companies and trustees through which the foreign-registered jets were purchased.

Oftentimes, Nigerians and corporate bodies buy their foreign-registered private jets through foreign shell companies and trustees.  Experts believe they often prefer to register the jets in foreign countries like the United States, United Kingdom, and Isle of Man, among others, to preserve the value of the aircraft in the event they want to sell it, as well as pay cheaper insurance premiums.

The latest findings showed that the jet owners had approached the Federal High Court Abuja seeking the court to determine, among other things, if they were liable to pay import duty.

The suit, with number FHC/ABJ/CS/1565/2021, is described as the matter of an application for judicial review by foreign registered aircraft against the Nigeria Customs Service and Nigeria Civil Aviation Authority.

According to the court document, the 17 applicants, which are mostly foreign companies of the Nigerian jet owners are: Aircraft Trust and Financing Corp Trustee, UAML Corp, Bank of Utah Trustee, Masterjet AVIACAO Executive SA, and Cloud Services Limited.

Others are MHS Aviation GmbH, Murano Trust Company Limited, Panther Jets, SAIB LLC, Empire Aviation Group, and Osa Aviation Limited.

The list also includes BUA Delaware Inc, Flying Bull Corporation Limited, Air Charter Inc, Sparfell Luftahrt GmbH, WAT Aviation Limited, and ATT Aviation Limited.

The NCAA and Customs were listed as respondents.

In a written address in support of the first respondents objector notice of preliminary objection, the court paper read in part, “The brief facts of this case are that the first respondents, having discovered that some operators of aircraft imported them under the guise of Temporary Importation Permit, were permanently imported into Nigeria and given TIP status to evade payment of lawful customs.”

A hearing date is yet to be fixed for the suit, according to preliminary findings by our correspondent.

However, there are strong indications that the NCS is making frantic efforts to get the private jet owners to pay the import duty.

Multiple sources confirmed on Tuesday that the NCS was not giving up on the decision to collect the revenue on behalf of the Federal Government, having obtained a presidential approval on the matter.

It was gathered that the agency might take a major decision on the matter very soon.  It was further learnt that the Customs is in possession of government documents indicating that the private jet owners are by law required to pay import duty.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
YOU MAY ALSO LIKE