FIRS quizzes top officials of 6 firms over N2.4bn tax debt

Federal Inland Rev­enue Service (FIRS) in a two-day tax enforcement drive has quizzed top officials of six companies operating in La­gos for failing to remit tax revenue amounting N2.4 billion.

The companies and their outstanding tax liability are Leaders and Company Ltd, N228.5 million, Lottoj Oil and Gas Ltd, N14.4 million, First Deep Water Ltd, N63.1 million, Tonique Oil Services Ltd, N27.79 million, Tak Continental Ltd, N960.2 mil­lion and Alliance and General Insurance, N1.13 billion.

Officials of the companies were not only quizzed for failing to remit their outstand­ing tax liability but have also not filed their tax returns as required by law.

Earlier, the Service on October 3, 2014, in Lagos, embarked on a similar tax re­covery exercise against Baker Hughes, Line Trale, Tecon Oil and Heyden Petroleum, all operating in the oil and gas industry.

Recall that the Executive Chairman of FIRS, Alhaji Kabir Mashi, at its Regional Enlarged Management Meet­ing (REMM) held in Ibadan on September 25, 2014 said the Service would be com­pelled to invoke relevant laws against recalcitrant taxpayers.

In line with that threat, Mashi directed a full scale enforcement exercise against corporate bodies and individ­uals who have not filed “Tax Returns” and voluntarily ful­fill their tax obligations.

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

The recent enforcement exercise in Lagos, was led by Mrs. Anita Erinn, Head of Debt Enforcement and Special Prosecution Unit (DESPU) of FIRS, who said the exercise became neces­sary following the compa­nies’ refusal to respond to no­tices and letters of reminders to fulfill their tax obligations.

She 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. Top officials of the affected companies are still being questioned by the special purpose tax officials at the FIRS office in Lagos. Companies and individuals are to ensure deductions and remittance of tax payable as provided by Part V1, Section 40 of the FIRS Establishment Act 2007.


Source : SunOnline

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