Facts:

The matter stemmed from a tax dispute between MTN Nigeria PLC (the Respondent) and the Federal Inland Revenue Service (FIRS) (the Appellant) concerning the assessment and enforcement of VAT liabilities arising from transactions that occurred in 2007 and between 2010 and 2017.

The Office of the Attorney General of the Federation issued a report detailing the findings of its investigation into the Respondent, alleging that the company owed a sum of N242.2 billion in import duty and VAT taxes, as well as an estimated $1.248 billion in VAT and withholding taxes, which covered certain goods and services purchased by the Respondent. Following this, the Appellant notified the Respondent of the report and proceeded to review the Respondent’s tax and accounting records. After a series of meetings between the Appellant and the Respondent, the Appellant revised the initial tax assessment. The Respondent, being dissatisfied with the revised assessment, objected and the Appellant further revised the tax. Still dissatisfied with the revised assessment, the Respondent appealed to the Tax Appeal Tribunal.

The Tax Appeal Tribunal ruled in favor of the Appellant but stated that the Appellant was not entitled to any interest or penalties payable by the Respondent. Dissatisfied with the tribunal’s decision, the Appellant appealed to the High Court of Lagos State, seeking to have the tribunal’s decision set aside and requesting all the reliefs sought, including the interest and penalties.