FIR Recovers Over N100m From Tax Defaulters In Port Harcourt
From Kelvin Ebiri, Port Harcourt
The combined task force team of the Port Harcourt Integrated Tax Office of the Federal Inland Revenue Services (FIRS), has recovered over N100 million from some of the companies accused of tax evasion.
In a statement endorsed by the Tax Controller, Integrated Tax Office, Port Harcourt, Mr. Femi Faniyi, the clampdown on the tax defaulters followed discoveries of under-assessment in the presentations of some companies in their tax accounts.
The team that recovered the money was led by the Director, Small and Medium Tax Payers Department, Area 1, (SMTD 1) Abuja, Mrs. Veronica Osinowo. Other members of the FIRS task force were the Regional Coordinator, FIRS South, South, Mr. Gbolaga Oshiga the ITO Controller, Mr. Femi Faniyi and Mr. E.O. Fagbemi of the SMTD 1.
The FIRS office in the Rivers State capital has, however, sealed off the premises of three companies - PELFACO Ltd, Aluu Suites and CTL - for tax malpractices.
Faniyi explained that the sealing up of the companies was part of an exercise aimed at recovering taxes owed the Federal Government by about 16 companies in parts of the state.
According to him, some of the companies were confirmed to have actually engaged in various tax malpractices, including short payment, failure to remit accruing taxes, including VAT, since 2004, and outright evasion.
He said the taxes owed include company income tax, withholding tax, education tax, income tax, and value added tax (VAT). He noted that some of the companies, including those that are big players in the oil sector, were owing taxes in excess of N100 million.
Mrs. Osinowo said it was not the desire of the FIRS to close down businesses, as it expected that people should run their businesses successfully and without distractions, and that accruing taxes, including those collected from customers on behalf of government, such as VAT, should be remitted as and when due.
She regretted that many Nigerians lacked responsible tax culture, and stressed that most of the companies involved reneged in their tax responsibilities, and pocketed the taxes instead of remitting them.
"The FIRS has decided on the option of sealing off the offices upon the discovery that correspondence and dialogues failed to achieve results. All the companies concerned are going to be shut down and we are equally arresting some of their staff where we have to," Osinowo said.
Mrs. Osinowo said the headquarters of the FIRS in Abuja was insisting that only full compliance would do, as the service engaged the defaulters on dialogue and correspondence long enough.
She added: "We are insisting that they pay all taxes owed. Some of the monies being requested for are VATs already paid by their clients and customers. Pocketing such monies amounts to stealing." She added that the FIRS would have no other option than to commence prosecution of the companies after the sealing off.
