The Federal Inland Revenue Service (FIRS) on
Monday shut down tax defaulting companies in
Lagos State and Imo State. In Lagos, the premises
of Capital Oil Plc, owned by business mogul and
politician Ifeanyi Ubah, was sealed by the FIRS
enforcement team, led by Mrs. Anita Erinne. The
staff of the company, which reportedly owes N30
million, were also evicted from the premises.
Monday shut down tax defaulting companies in
Lagos State and Imo State. In Lagos, the premises
of Capital Oil Plc, owned by business mogul and
politician Ifeanyi Ubah, was sealed by the FIRS
enforcement team, led by Mrs. Anita Erinne. The
staff of the company, which reportedly owes N30
million, were also evicted from the premises.
Capital Oil management told FIRS officials that they
were ready to pay its tax liabilities. However, FIRS
officials said it was not possible because normal
banking hours had ended and that they now had to
shutter the gates.
Also in Apapa, the FIRS visited the offices of
Folawiyo Energy Trading Company along Creek
Road. But the company, which the FIRS says owes
N450 million in tax since 2013, maintained that it is
only owing for last year. The FIRS team did not seal
the company, but advised its management to clear
the matter up at the FIRS office in Ikoyi.
Also in Lagos, the FIRS enforcement team visited
the offices of Makon Engineering and Technical
Services Limited, located on 11 Babatunde Anjos
Street, Lekki Phase 1.
However, the enforcement team, which was
prepared to lock up the company, changed its mind
after the company's Chief Financial Officer, Lanre
Anafi, agreed to the immediate commencement of
the payment process of its N26 million tax debt.
The enforcement team led by Emeka Obiagwu, FIRS
Director of Enforcement, departed the premises after
reaching a firm understanding with the company that
the debt would be defrayed before the close of
work on Monday.
In Owerri, capital of Imo State, the FIRS
enforcement team sealed the premises of two
eateries and hotel. According to the enforcement
team, the three outfits were shut after concerted
efforts by the FIRS to get them to defray their tax
liabilities but failed. The affected outfits are City
Chef Restaurant, De Mange Eatery House, and
Comet Hotels and Conference Hall.
Speaking to the media after the exercise, FIRS
enforcement team leader, Mr. Chinazo Udeh,
explained that all due processes laid down by law
were exhausted before the businesses were sealed.
"We assessed and gave them notice of what they
owe as tax. They did not respond to our
communication. This was followed up with two
separate reminders. Thereafter, a demand notice
was sent to them with all these largely ignored.
After the expiration of the one month window
following the final notice, we were left with no
option but to enforce the law."
De Mange eatery has a tax liability of N20 million,
while City Chef and Comet Hotel and Conference
Hall owe N2.1 million and N2.3 million
respectively.
At the point of sealing Comet Hotel & Conference,
the company lawyer rushed to the bank and paid
N70,000. But that, according to the enforcement
team, was inadequate to unseal the hotel.
"They just decided to pay N70,000 out of a tax
liability of N2.3m. That does not show seriousness.
As a matter of fact, the money they just paid is a
penalty for an earlier contravention for late
registration. They have paid nothing on the Value
Added Tax obligations. In any case, the order to
deal this place came from our head office, the order
to unseal will also come from there," said Udeh.
The team also moved to Disney Hotels and Oasis
Communications to serve reminders.
http://saharareporters.com/2016/06/27/firs-seals-
ifeanyi-ubah%E2%80%99s-capital-oil-company-
efforts-curb-tax-evasion
efforts-curb-tax-evasion
