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Tag: FIRS

  • FIRS shuts more firms in Lagos, Abuja over tax debt

    FIRS shuts more firms in Lagos, Abuja over tax debt

    The Federal Inland Revenue Service (FIRS) continued its tax compliance exercise in Abuja and Lagos, shutting the premises of defaulting companies.

    In Abuja, the FIRS team, led by Chinazor Edeh, shut down the office of Taleveras, an energy firm operating from the Maitaima area of the city.

    A warrant of distraint presented by the team indicated that the company is owing over N667 million in tax liabilities.

    Before sealing off the company, Edeh told its the Chief Security Officer (CSO), the highest ranking official available, the firm has failed pay the balance of its tax liabilities after it paid N50 million, following the sealing off of its premises in May.

    Edeh explained that the FIRS was not interested in sealing off the company, but to ensure that the tax is paid.

    But the CSO said the company is incapable of defraying the liabilities, as it has not been able to pay salaries. Consequently, the enforcement team ordered the staff to vacate the premises and proceeded to seal off the company.

    Also sealed by the enforcement team is Jardin Nigeria Limited, a landscaping/ project management company, with an office at Abuja’s Transcorp Hilton Hotel.

    The company owes over N129million in taxes. An official of the company, who identified himself simply as Mr. Olu, admitted that the company owes, but argued that some state governments owe the company over N2 billion.

    Edeh advised the company to pay 50 per cent of its tax liabilities and reach agreement with FIRS on a structured payment of the balance.

    In Lagos, two companies were shut in the Ikeja area by the FIRS team, led by Anita Erinne.

    First to be shut was Guarantee Petroleum Company, located at 21 Salvation Road, off Opebi Road.

  • Unpaid Taxes: FIRS seals companies in Kano, P/Harcourt

    Unpaid Taxes: FIRS seals companies in Kano, P/Harcourt

    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.

  • FIRS shuts Atlas Petroleum over $1.5m tax debt

    FIRS shuts Atlas Petroleum over $1.5m tax debt

    • Unseals Costain W/Africa Ltd 

    An enforcement team of the Federal Inland Revenue Service (FIRS), yesterday shut the headquarters of Atlas Petroleum International Limited over the firm’s tax liabilities totaling $1,5million.

    On arrival at the office, located at 1 Chris Madudike Drive, Lekki, Lagos, the FIRS enforcement team, led by Mrs. Ruth Mandeun, met only one employee of the company.                                  The employee pleaded with the team to allow him get in touch with the General Manager of the company, but his pleas were rejected.   Also, the GM’s pleas on arrival  were rejected.

    The team leader advised that he should visit the Ikoyi office of the FIRS to resolve the matter, saying the company was informed on Monday that it should pay a substantial part of its tax liabilities by Wednesday,or risk being shut down.

    Also on yesterday, FIRS officials, led by Anita Erinne, visited companies it sealed on Wednesday. Out of the companies sealed by the team on Wednesday, only Costain West Africa, located at 174, Funsho Williams Avenue, Lagos, was unsealed at 1pm on Thursday.

    The management of the company informed the FIRS team that it had paid part of the taxe liabilities. Erinne said she was aware that the company had paid and ordered its gates unlocked. She, however, explained that she would confirm the exact amount paid by the company.

  • FIRS shuts Meditarian over N4b tax debt

    FIRS shuts Meditarian over N4b tax debt

    • Seals HFP Engineering, others

    The Federal Inland Revenue Service (FIRS) yesterday shut Meditarian Nigeria Limited located at 243, Kofo Abayomi Street, Victoria Island, over a tax debt of over N4billion spanning 2008 – 2013.

    An officer of the firm, Mr Raja, an Indian, said he was not aware of the debt. He called on one Mr. Kola to attend to the FIRS team. Kola admitted that the firm owed the debt and pleaded for time to pay it. “We have been in discussions with your office in Abuja over the matter.” he said. The FIRS officials were not persuaded and sealed the company’s office at at 2:30pm.

    Also, the operational headquarters of H.F.P Engineering Nigeria Limited over the company’s tax liabilities o N536million.

    Employees of the firm were ordered out of the office located at Globe House, Plot 0-17B, Road 8, Victoria Garden City, Lagos.

    The FIRS enforcement unit was led by Anita Erinne.

    Also affected was Dimension Data at Block 235 Muri Okunola Street, Victoria Island, Lagos. The firm has tax liabilities in excess of N540 million. Its top officials were said to be unavailable when the office was sealed at 1:30pm.

    The same fate befell Sirius Energy Resources, located at 209 Muri Okunola Street. The firm owed N11million in taxes. Holding  a Warrant of Distraint letter, Erinne told a female employee in the firm’s administrative department to inform workers to vacate the premises within 10 minutes.

    The enforcement team visited NICON Hotel at the Victoria Garden City after it was informed that Global Fleet, a tax-defaulting firm owned by Mr. Jimoh Ibrahim, was operating from there. But the hotel was not sealed. This was after Ibrahim came out to explain to  the team, which wanted to lock up its premises, that Global Fleet is currently being managed by the Assets Management Corporation of Nigeria (AMCON).

    “AMCON has taken over for now and there is a court order on that. As soon as it is waived, after we have resolved with AMCON, we will call you concerning liabilities,” Ibrahim told the FIRS team. Ibrahim also insisted that Global Fleet operates from its Marina headquarters and not the NICON Hotel. At TSL Logistics Limited, located at 1 Coker Road, Ilupeju,  a worker of the firm put up a spirited effort to persuade the team not to seal the office. The man, who identified himself as Mr. Wale, said the firm was not owing the N724million ascribed to it by the FIRS, given that it submitted a credit note of N211million to the FIRS office yesterday. Erinne, however, insisted that the document from her office indicated a tax debt of N724million and ordered the office sealed at 4.25pm.

  • FIRS shuts Costain over N2b tax debt

    FIRS shuts Costain over N2b tax debt

    In continuation of its efforts to recover unpaid taxes, the Federal Inland Revenue Service (FIRS), yesterday, sealed the offices of Costain West Africa over N2billion in company income tax, Value Added Tax  (VAT) and other taxes.

    Also sealed were First Deepwater Discovery Limited, CAT Construction Group Limited and OPI International Limited, all in Lagos.

    First Deepwater Discovery Limited, located at 20, Ogunlana Drive, Surulere, has tax liabilities of N230million, made up of withholding tax, education tax and VAT. CAT Construction Group Limited, located at 20C Ogunlewe Street, off Ligali Ayorinde Street, Victoria Island, is owing N176million in taxes. OPI International Limited, located at UBA House, Marina, is also owing N3 million in company income tax and VAT.

    A top management staff of OPI pleaded with the enforcement team to grant the company an extension of the grace period for the resolution of its tax liabilities.

    However, Anita Erinne, leader of the FIRS enforcement team, ignored pleas and ordered the office sealed after she had ordered the staff out of the office.

    “I have to carry out the directive as I have been directed,”  Erinne said.

    The FIRS team arrived Costain West Africa Plc’s office, located at 174 Funso Williams Avenue, off Apapa/Oshodi Expressway at about 1pm. About half an hour later, the company was sealed.

    A top official of the company told the team that the company’s chairman was not available to attend to the team. The official also claimed the company has already started discussions with the FIRS on how to defray its tax liabilities, something Erinne said she was unaware of.

    In Onitsha, Anambra State, the FIRS team shut down four business premises. At the Building Materials International Market, Ogbunike, the team closed down the offices of Shoelz International Limited over a tax debt of N32million. Also affected by the enforcement exercise was Midfield West Africa Limited, which defaulted on a tax obligation of N11million. Felixo International Hotel Limited in Oba was sealed for owing taxes totalling N15million.

    Also in Onitsha, Ekwenibe and Sons Trading Company Limited was shut over a tax liability of N78million.  Mr. Chibuzor Edeh, leader of the enforcement team in Onitsha, said all the affected companies were served several reminders, which they ignored, leaving the FIRS without an option but enforcement.

    The renewed crackdown on tax defaulters began on Monday, when FIRS enforcement teams shut the premises of four companies in Lagos and Owerri, Imo State. In Lagos, Capital Oil Plc had its offices shut over a tax debt of N30million. In Owerri, the FIRS sealed two eateries and a hotel. The affected eateries were De Mange Eatery and City Chef, which owe  N20million and N2.1million respectively.

  • When FIRS wielded the axe against corporate tax defaulters

    When FIRS wielded the axe against corporate tax defaulters

    Last Wednesday, there were media reports, based on a statement issued by the NICON Group, that the organisation had resolved issues around its tax liability with the Federal Inland Revenue Service (FIRS).

    The resolution came after the FIRS enforcement team had sealed NICON Luxury Hotel and NICON Insurance, both in Abuja, over outstanding tax liabilities.

    This sealing was after the expiration of a six-week grace period given defaulting companies to pay.

     According to the FIRS warrant, NICON Luxury Hotel owed about N392, 623,765.00 in unpaid tax liabilities.

    The FIRS said the amount consisted of unpaid/unremitted liabilities of the hotel in Company Income Tax, Education Tax, Withholding Tax and Value Added Tax between 2009 and 2013.

    The hotel management team had claimed that it was not owing such a sum, saying the tax arrears of the company was N24 million. Of the N24million, claimed the management, N6 million had been paid.

    The management, however, admitted that the hotel was not unaware that it was owing. For this, its tax consultant had written the FIRS to complain and the hotel was already discussing with the FIRS ways of resolving the matter.

    The FIRS requested evidence of the correspondence between the hotel and the FIRS, which was not produced, compelling the enforcement team to seal the hotel and three bank branches located within its premises.

    The enforcement team moved to NICON Insurance, where it three floors of the building occupied by the company.

    FIRS’ restraint warrant showed that NICON insurance was owing N182,685, 036 million in unremitted Withholding Tax and VAT from 2008 to 2012.

    In Lagos on 11 May, the FIRS enforcement team, led by Mr. Emeka Obiagwu, sealed three offices of a major telecommunications firm for non-remittance of N24.3billion in Value Added Tax (VAT). It also sealed off the premises of Erin Petroleum (formerly Camac Petroleum Limited) which had a tax liability of N107.3million and $10.6million respectively.

    Also in Lagos, the FIRS shut the office of Swift Networks, an internet service provider and Pan Ocean Oil Corporation Nigeria Limited.

    Swift Networks, which has its office on 31, Saka Tinubu Street, Victoria Island, Lagos,  failed to remit N702 million to the government. Chief Operating Officer of Swift Networks, Chuma Okoye, pleaded for an extension of the period of grace but was told by Obiagwu that his company should have complied with the laws governing business in the country. Obiagwu explained that FIRS has huge obligations to fulfill.

    “Several notices have been served on the companies and I believe several moves were also made to compel the companies to remit their taxes. But most of these companies turn deaf ears; that is why we usually give them long rope,” he disclosed.

    Okoye explained that his organisation has started working on how to fulfill its obligations to government.

    At the office of Pan Ocean Oil Corporation, the company’s security men attempted to prevent FIRS officials from carrying out their duty.

    The management of the firm was told to send representatives to the FIRS office to discuss how to remit the $29.2million owed in VAT.

    At Century Energy Services Limited in Lagos, the staff were told to vacate their offices and the building was sealed.

    Similar exercise took place in Abuja, Owerri and Kaduna. In Kaduna, FIRS officials sealed the office of System Properties Development Company Limited located at Shehu Crescent in Kaduna North Local Government Area for the company’s failure to remit over N20 million. The same fate befell Mutunci Company Nigeria Limited located at Plot 5, Kudenda Industrial Layout, Kaduna.

    The company failed to remit over N42 million.

    The owner of the company, an Indian whose, name was given as Mr. Vora, insisted that he was up to date in the payment of taxes and went ahead to show his 2016 VAT clearance certificate due to expire in December.

    He was, however, told by the enforcement team that there were discrepancies between the expected payment and the actual payment of over N42 million.

     “Today, we have invoked our statutory provisions and sealed off System Properties Development Company Limited and Mutunci Nigeria Limited, who have outstanding tax liabilities which run into millions. The companies will remain under lock and key unless and until the affected companies clear and liquidate their liabilities,” said Suleiman Abubakar, leader of the enforcement team in Kaduna.

    In Owerri, Imo State, the offices of Imo Transport Limited and Holidays and Tours Limited were sealed. The companies owe N36,407, 775.42 and N2, 411, 523.72 respectively. In Aba, Abia State, the office of Dan Dollars Motors Limited was shut over its tax liability of N3,557, 361.16, while that of De Okafor and Sons Limited was shut over tax indebtedness of N2,270, 722.00.

  • FIRS seals Abuja firm over N276m tax

    FIRS seals Abuja firm over N276m tax

    The Federal Inland Revenue Service (FIRS) has sealed the office  of Tak Continental Group in Abuja over its failure to pay N276, 378, 212. 45 million taxes.

    The tax liability is made up of Company Income Tax (CIT), education tax and Value Added Tax (VAT) from 2008 to 2010.

    A Director of the company, who declined to identify himself, claimed he had no information on the firm’s tax liability.

    He subsequently agreed to order the workers home to enable him get information about the tax debt.

    Consequently, the FIRS team, led by Miss Ruth Maundeun, ordered the workers out of the office and sealed the office. She promised not to reopen the office until the company pays the entire tax liability.

    In Lagos, the FIRS team visited the office of Boron Oil and Gas, located at Plot 15 Henry Ogbogbo Crescent, Lekki. However, the company’s office was not shut.

    Leader of the enforcement team, Mr. Emeka Obiagwu explained that the company was not sealed because it already has an arrangement with the tax office to defray its N259million tax liability. According to him, the arrangement involved paying in installments. The company, he explained, attempted to pay N40.2million on Friday, but was thwarted by hitches in the banking transaction. Obiagwu said the team saw correspondences between the company and its bank as regards the failed transaction.

     

  • FIRS shuts more firms in Lagos, Aba, Owerri

    FIRS shuts more firms in Lagos, Aba, Owerri

    The enforcement unit of the Federal Inland Revenue Services (FIRS) yesterday continued its closure of big companies in Lagos and across the country for non-payment of a variety of taxes. In Lagos, FIRS officials shut down the premises of  RT Briscoe Nigeria PLC, Sinopec Nigeria, an oil and exploration company in Ikoyi, over failure to remit their taxes.

    The Lagos enforcement team, led by Emeka Obiagwu, sealed up Briscoe Motors  located on  Fatai Atere Way, Mushin, over the company’s failure to remit  N1.9 billion in taxes. The team ordered  the  staff out of their offices and locked up the building.

    A top management staff of the company made efforts to pacify FIRS officials, saying the company had  N150million to the FIRS.

    Obiagwu, however, maintained that until “the company remits a minimum of 50% of the total amount owed in taxes, its premises will remain shut.”

    “My mandate is to get at least 50% of the total amount owed by the company, anything less  than that will not be acceptable,” Obiagwu said.

    At Sinopec Nigeria, the company which  owes $15million, the enforcement team had no trouble shutting down the office premises  and staff quarters

    The first company visited by the enforcement team, Hammoud and Saidi International, is located at Wuse Zone 5 Area of Abuja.

    The company is owing N5.9 million tax liability for the 2012. Only one official of the company who simply identified himself as Tony was available at the time of the enforcement’s team’s arrival.

    He could not present any evidence of payment  to the enforcement team. Consequently, the office of the company was shut.  Also yesterday, the FIRS team in Aba, Abia State, shut down the premises of Dan Dollars Limited and D.E Okafor and Sons Limited for non-remittance of taxes.

    It will be recalled that the FIRS team, on Thursday, shut the Imo Transport Company and Hotels & Tours Ltd in Owerri, Imo State.

  • NNPC owes over $300m in taxes, says FIRS

    NNPC owes over $300m in taxes, says FIRS

    The Nigerian National Petroleum Corporation (NNPC) is owing over $300 million in tax arrears, the Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, has said.

    Fowler, while speaking yesterday before the Hon. Michael Enyong Okon headed Adhoc Committee Investigating the FIRS’ accounting procedure, said the computation of the outstanding was done by the NNPC itself.

    On NNPC’s non-compliance with the issue of tax return, he said all unresolved matters will be sorted out at the conclusion of the ongoing audit exercise, adding that the FIRS should have a proper assessment at the end of the audit of the NNPC  in June.

    He said: “On the taxable profits of companies, (under NNPC), I cannot give any specific information regarding the amount until the audit report for last year is ready for assessment.”

    He however said the Corporation has promised to get back to the Agency with a plan on how to defray the outstanding, stating that the self-assessment by companies as done by the NNPC was not final.

    “We are also deploying a system where all outstanding taxes owed by companies are recalled using automated platform. Right now, many companies, on the basis of that are doing self-assessment and have promised to remit all outstanding Value Added Tax (VAT) owed.

    “One of the key things we did to ramp-up the revenue base when I was in Lagos, was to do a comprehensive audit, and I believe if we apply the same method, we will achieve the same result and even more. I know that those I met on ground did their best to enhance the process and we are currently building on what they put on ground,” he said.

    Fowler said Nigeria is part of countries losing about $250 billion through evasion/ underpayment of taxes, adding that there is need for a sensitive and pro-active tax collection and management regime.

    “We tend to believe that companies, especially multinationals would declare their figures properly, but organisations that deal with tax have estimated that well over $250 billion is lost every year in tax revenue from companies that file low revenues as returns.

    “So, I think we just have to change our approach and assume that everyone is guilty until proven innocent  when it comes to the issue of tax,” he stressed.

    On their part, the lawmakers insisted in knowing why the FIRS withheld part of the N7.5 billion tax refunds meant for some companies that had been overtaxed. The agency had requested for the funds from the Office of the Accountant General of the Federation (OAGF), received it, but some of the affected companies alleged that they never got it.

    The Committe chair wondered why the FIRS would receive the amount only to deprive some of the firms that have legitimate claims on the refund.

    Responding, Fowler said in the case of tax refund, the N7.5billion released on19th December, 2014, from the Committee’s investigation, revealed that some of the said approved cases were not implemented as monies received, were not paid to all those who were listed in the request, adding that certain criteria were used for consideration and payment in order to avoid paying an undeserving companies.

    He however promised to look into the matter, with the assurance that such an incident would not occur again.

  • House probes FIRS’ N89.6b yearly deductions

    House probes FIRS’ N89.6b yearly deductions

    The House of Representatives has started the probe of the over N89 billion annual deductions of the Federal Inland Revenue Service (FIRS) from tax revenue it collects for the Federal Government.

    The Ad-hoc Committee, headed by Hon. Michael Enyong yesterday began an investigative hearing into the Accounting Procedures of the Federal Inland Revenue Service (FIRS) that made the four per cent deductions of the FIRS translate into such huge funds.

    “The primary focus of this Ad-hoc Committee will be to scrutinise the accounting procedure and calculations of the four per cent of this non-oil tax revenue which the service is empowered to retain as operational cost which in 2014 stood at N89.6billion,” Enyong told participants

    He said in 2014, revenue from the FIRS amounted to N4.69trillion while the national budget for that year stood at N4.669trillion.

    “We can infer from this that if revenue from tax is properly administered transparently, accountably, diligently, it will be sufficient to fund the national budget.

    “Over reliance on oil revenue is inadequate; the country must focus on a more reliable and predictable source of revenue which, without doubt, is taxation,” he said.

    According to the lawmaker, the investigative hearing, which involved government revenue generating agencies, private corporations  as well as accounting professionals locally and internationally, “is only aimed at providing adequate framework for effective taxation and tax administration in the country.”

    The Speaker, Hon. Yakubu Dogara while declaring the hearing open said the N6.060trilion 2016 budget can be financed by an improved method of tax collection.

    Represented by Deputy Speaker, Hon. Yusuff Lasun, he said a strong tax regime aided by an efficient and virile accounting system in the successful diversification of  any economy.

    According to him, the hearing was necessitated by a resolution of the House which led to the setting up of the Committee with a view to ascertaining the accounting framework currently in use and examine its effectiveness in line with current economic realities.

    Dogara said while tax policies and tax laws create the framework for improved tax revenues, the actual level of taxes which flow into government revenue largely depends on the efficiency and effectiveness of the accounting procedures adopted by the revenue administration within the economy.

    He said: “You will recall that the House on its first sitting on August 11th,  2015 reached a resolution that mandated this Ad-hoc Commitee to investigate the accounting procedures of the FIRS with a view to ensuring adherence to constitutional and statutory provision.

    “This investigative hearing is coming at a time when our economy is facing acute revenue shortfall owing to the global downturn in the oil market. So there’s no better time that we must diversify our revenue base and strengthen our revenue collection system than now.”

    He lamented the negative consequences the nation’s mono-product economy has visited on on the country, adding that it has led to the need for more revenue sources from alternative sources.

    “This exercise is therefore part of legislative effort aimed at complementing government plans toward boosting it’s revenue generation as the nation strives to check its over dependent on oil. I’m of the firm believe that a properly structured and efficient revenue service could generate and even surpass the N6.060 trillion required to fund the 2016 budget,” Dogara said.