Facts:

The respondent is the tax management and enforcement organ of the Lagos State Government. It was the plaintiff/applicant in the suit filed at the high court of Lagos State, which gave rise to this appeal. The appellant is a limited liability company having foreign participation in its equity and its principal place of business in Uyo, Akwa Ibom State. It was the defendant/respondent in the suit filed at the court below.

Sometime in 1991, the appellant established an office on leased premises situate at 34, Docemo Street in Lagos State in order to facilitate its business activities in the State.

Prior to 1993, the appellant had always remitted PAYE and withholding tax deductions from its employees’ emoluments to the Akwa Ibom State Government. However, in 1994, the appellant’s company secretaries, a law firm based in Lagos, commenced the payment of PAYE and withholding tax deductions from the emoluments of its employees to the respondent and discontinued further payments to the Akwa Ibom State Government.