Tax Evasion: FIRS Quizzes Top Officials of 18 Companies

Posted by African Examiner Business News, Latest Headlines Sunday, November 23rd, 2014

Ayodele Afolabi, Abuja

The Federal Inland Revenue Service (FIRS), in a week-long tax enforcement drive,has quizzed top officials of 15 companies operating in Kano metropolis for failing to file their tax returns, remit tax revenue and offset their outstanding tax liabilities.

As statement signed by Emmanuel Obeta, Director, Communications and Liaison Department of FIRS in Abuja said that the companies with outstanding tax liabilities quizzed by the FIRS joint team of Medium Tax Office (MTO) and the Special Enforcement and Investigation Unit, are Crown Continental Ltd, Mentholatum Nigeria Ltd, Rumbu Sacks Ltd, Terrytex Nigeria Ltd, Klysat Concepts Ltd and Digibit Control Nigeria Ltd.

The six companies, according to him are owing outstanding tax liabilities of N39.8 million in Companies Income Tax (CIT), Education Tax (EDT), Withholding Tax (WHT) and Value Added Tax (VAT).

Others who have failed to file their tax returns as stipulated by the relevant statutes include:Lungun Fulani Nigeria Ltd, Auwalu Musa and Co. Nig. Ltd, GeeDee Enterprises Ltd, Kimpex Engineering and Construction Ltd and Nako Ltd.

Others are: Rano Oil and Gas Ltd, S. Roda and Sons Ltd, Edmarck Nigeria Ltd, F.K. Construction and Co Ltd, Nigerian Road Construction Ltd and Omni B. Holdings Ltd also belong to the categories of non-filers of tax returns.

It would be recalled that the Executive Chairman of FIRS, AlhajiKabirMashi, had in September 25, 2014 directed all field offices across the country to commence full- scale enforcement exercise against corporate bodies and individuals who have not filed “Tax Returns“ nor voluntarily fulfilled their tax obligations.

The tax law requires companies, with 31st December as their end of Year Accounting Date, to file their tax returns on or before the end of June of every year, while payments of taxes were expected to be made not later than end of August.

The week-long tax drive exercise in Kano was jointly led by the Tax Controller MTO, Mr Pam Davou and Mr. MasamaHaruna of the Special Enforcement and Investigation Unit.

Davou said the exercise became necessary following the companies’ refusal to respond to several notices and letters of reminders asking them to fulfil their tax obligations.

He said the exercise was aimed at recovering arrears of taxes accruing to government from Company Income Tax (CIT), Education Tax (EDT), Withholding Tax (WHT) and Value Added Tax (VAT) as well as compelling the companies to file their annual tax returns.

“The Nigeria tax laws are very liberal because this exercise is the last option after we have sent series of letters, notices and even paid visits to the affected companies to remind them of their obligations.

“We all have obligations to pay taxes and more importantly, comply with the relevant tax laws of the country.”

The top officials of these companies were made to sign an undertaking with the FIRS, specifying the period within which they would fulfil their tax obligations.