FIRS ignores $100,000 'palliative', seals off companies for millions of dollars

FIRS ignores $100,000 ‘palliative’, seals off companies for millions of dollars

August 18

08:54 2016

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The shut-down of tax defaulters by the Federal Inland Revenue Service (FIRS) continued on Wednesday, as FIRS enforcement teams visited companies in Lagos, Nnewi and Kaduna.

In Lagos, the FIRS sealed off the office of Erin Petroleum Limited at Plot 1649 Olosa Street, Victoria Island.

The company has a tax indebtedness of over $10million. The FIRS said the company’s promise to offset the debt was not kept.

Also sealed off was Newcross Petroleum Limited, located at Plot 17 Ligali Ayorinde Street, Victoria Island, for owing $1.964million.

The company’s finance director admitted that they owe the amount, adding that the company has paid $100,000 as a sign of commitment and pleaded for more time. The plea was ignored.

Another company shut was Boron Oil Gas Limited, located at Block 110 Henry Ojogho Crescent, Lekki, which owes over N165million in taxes.

According to Ann Erinne, head of the Lagos enforcement team, the company was sealed for reneging on its promise to pay N32million monthly to offset the debt.

The financial controller of the company told FIRS officials that the company is currently experiencing cash flow problems.

She added that the company paid N27million in July and will pay the N5million balance for July as well as make full payment for August. She pleaded for more time, but her plea was rejected.

Similarly shut was Hensmor Petroleum Company Nigeria Limited, located at 26, Dockyard Road, Apapa, over tax liabilities totalling N16million.

In Nnewi, Anambra State, the FIRS closed down the office of, Jimex Industries Nigeria Limited in the Otolo area of the city.

The company, which manufactures aluminum products, owes N10. 1million in Company Income Tax, Withholding Tax and Education Tax, accumulated over five years.

The Enforcement Team led by Ruth Mandeun arrived the company’s premises at around 11.02am. Top management staff of the company attempted to leave the premises to prevent the service of a Warrant of Distraint.

FIRS officials, however, warned that the staff could be prosecuted for obstruction. The team also prevented staff from taking out official vehicles and office equipment before ordering them out their offices to shut down the premises.