Six oil firms quizzed over N2.4b tax liabilities

305

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

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 also for not filing their tax returns as required by the 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.

It would be recalled that the Executive Chairman of FIRS, Alhaji Kabir Mashi at the Service 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 furtherance, Mashi directed a full scale enforcement exercise against corporate bodies and individuals who have not filed “Tax Returns“ and voluntarily fulfil their tax obligations.

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

She said 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 top officials of the companies are still being questioned by the special purpose tax officials at the FIRS office in Lagos.

 

 

Culled from Daily Independent news: http://dailyindependentnig.com/2014/10/six-oil-firms-quizzed-n2-4b-tax-liabilities/

LEAVE A REPLY

Please enter your comment!
Please enter your name here