The Federal Inland Revenue Service (FIRS), on Thursday, sealed the offices of two tax-defaulting companies in Kano over tax liabilities. The affected companies are Standard Plastic Nigeria Limited, located in the Bompai area of the city, and Triumph Publishing Company, which is owned by the Kano State government.
According to the FIRS enforcement team leader, Mr. Chinazor Edeh, the two companies had previously received letters notifying them of their tax liabilities and urging them to pay.
“What we have come to implement today is the directive of the FIRS chairman; and the order is that you pay immediately or vacate the premises. Any of them who wishes to pay would be given the chance, but if they cannot pay the money now, the companies must be sealed,” Edeh said.
Standard Plastic Nigeria Limited owes N3, 989, 180.48 million of Education Tax for 2011.
Triumph Publishing Company, publishers of Daily Triumph and Weekend Triumph, owe FIRS N6, 584 of Withholding Tax for the year 2013.
Edeh advised companies in Kano to ensure prompt payment of all their taxes to avoid embarrassment.
In Port Harcourt, the FIRS team sealed the offices of two oil services companies.
Those affected are Cetco Oilfield Services Company, located in the Trans-Amadi area of the city, and Aquashield Oil and Marine Services Limited, which have tax liabilities of N9.7 million and N49 million respectively.
At Cetco Olifield, the procurement manager, Edotimi Ebikefe, begged for more time to enable the company pay up, explaining that it has already commenced the payment of its tax debt.
“We are not saying that we won’t pay. But the way things are right now, we find it difficult. Let them give us some time. If we don’t work, we cannot pay what we are owing,” he pleaded.
Leader of the FIRS team, Umar Bukar Gana, said the enforcement drive was necessary because of the indifference of some of the companies to tax payment. Gana explained that this has persisted despite many attempts to ensure compliance.
“Before this enforcement exercise, government had made a lot of entreaties to them, but they have repeatedly defaulted and we have no option but to do what we have just done,” he said.
He added that the sealing of the two companies will serve as a deterrent to other companies which default in tax payment. Speaking further, Gana said that until the taxes are paid, the companies would remain shut.
“I feel for the staff of those companies, but that does not mean we should not do what we need to do,” he added.
Gana took the opportunity to appeal to companies in the country to be responsible by paying their taxes, as this is an important way to assist the government to develop the country.