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Tag: FIRS

  • FIRS records 4m new taxpayers, N700m revenue increase in 2017

    The Chairman, Federal Inland Revenue Service (FIRS), Mr Tunde Fowler, said the Service recorded four million new taxpayers, including companies and individuals, resulting in N700 billion increase in revenue in 2017.

    Fowler said this at the 13th General Assembly of the West African Tax Administration Forum (WATAF) with the theme: “Enhancing the Revenue Potential of West Africa” held on Wednesday in Abuja.

    The chairman said in the past two years, the Service had increased its use of ICT to facilitate taxpayers’ compliance.

    He also said the service introduced initiatives to improve inter-agency collaboration with a view to enhancing tax administration and reducing tax revenue leakages.

    “Our efforts in this regard have made an impact and contributed to an increase in the number of taxpayers by an additional four million, including companies and individuals.

    “We recorded an increase of over N700 billion in tax revenues in 2017, above the taxes collected in 2016,” Fowler said.

    He said the launch of WATAF marked its formal entry into the ranks of similar organisations focused on international collaboration in tax matters, having attained the statutory requirements spelt out in the WATAF Agreement.

    Fowler said this marked a new dawn in the consolidation of WATAF collective aspiration to improve the standard of living of its people through effective mobilisation of available domestic tax revenue.

    “Now, West Africa has a platform for countries to collaborate in tax matters supported by their governments and a forum to articulate and project West African perspective in tax administration in the global tax arena.

    “We all are aware that the business community is setting up processes and structures which our legal and tax regimes did not contemplate and are struggling to keep up with.

    “Nowadays, trade and commerce have become borderless, especially with the advent of e-commerce, hybrid financial instruments coupled with the sophistication and ingenuity of the army of tax advisors.

    “At the receiving end are the host country and its nationals, whose governments are losing revenues that ought to have been put to use for development.

    “This further brings about stagnated growth, under development and other attendant ills in our countries,’’ he said.

    Fowler said against this backdrop, it was pertinent for tax administrators in West Africa to re-strategise to live up to their mandate.

    The Chairman of WATAF, Mrs Elfrieda Tamba, said the aim of WATAF was to bring tax administrators within the region together to share knowledge, interact and share experiences in order to better tax administration in the region.

    Tamba said countries must strengthen their capacity for sustainable development and how to use fund for sustainable development.

    “WATAF so far has consolidated its legal status, today we are celebrating the official launch of WATAF as a solid legal entity, fully empowered to engage in negotiation to enter contracts, to sue and be sued.

    “Today, WATAF has concluded all the necessary requirements to fulfill its objectives and honour the agreement to be an international origination.

    “This is important as we deal with international organsations, they will want to know WATAF legal status, and so this is a fulfillment of our own agreement and that goal has be met,’’ Tamba said.

  • FIRS seals 2 companies over N8bn tax debt in Delta, Edo state

    Officials of the Federal Inland Revenue Service (FIRS) on Wednesday sealed two companies in Delta and Edo over N8 billion tax debt.

    The Leader of the enforcement team, Mrs Anita Erinne, said the companies were sealed over failure to remit over N8 billion taxes payable to the Federal Government.

    She said that one of the affected companies (name withheld), located in Uvwie Local Government Area of Delta, was indebted to the tune of N121 million.

    She also revealed that the other defaulting company in Edo owed the government N8.1 billion.

    The team leader tendered separate “Warrant of Distraints’’ signed by the FIRS Chairman, Mr Tunde Fowler, to the companies to justify the exercise.

    According to her, Section 3 of FIRS (Establishment) Act, No.13 of 2007 and Section 44(2) of the Constitution of the Federal Republic of Nigeria 1999 empowers the FIRS to close any defaulting company.

    “No member of staff or anybody should remove the FIRS seals until the companies paid their debts.

    “Any attempt to do that, the company will be liable to a tune of N200,000 as a fine to the government,’’ she warned.

    Erinne, however, advised companies to comply with the tax laws and remit their taxes promptly to avoid being sealed.

    The News Agency of Nigeria (NAN) reported that the FIRS in 2017 netted N3.2 trillion in 10 months, an amount that represented 79.35 per cent of its target for the year.

    The Chairman of the Service, Mr Babatunde Fowler, then expressed readiness of his personnel to help Federal Government in blocking revenue leakages and increase collection of taxes payable to the government.

  • FIRS recorded N4 trillion tax revenue collection in 2017- Fowler

    The Chairman of Federal Inland Revenue Service (FIRS), Babatunde Fowler, on Monday said that the agency achieved N4 trillion as tax revenue collection in 2017.

    Mr. Fowler said this at the FIRS 2018 Management and Stakeholders in Lagos with theme, “Optimizing Tax Administration with Parliamentary Synergy”.

    The agency recorded N3.3 trillion as revenue collection in 2016.

    The chairman said he was hopeful that the country would be further moved forward through taxation.

    “By putting our hands together in contribution on to our set goal, I am confident that we will surpass our past result and we will be on our way to the future we hope to achieve.

    “It is clear that taxation is the most sustainable of all government revenue sources,” Mr. Fowler said.

    According to him, there has been sustained decline in global price of oil in second half of 2014, making the revenue generated from it to stand at N2.45 trillion.

    He also said that in 2015, 2016 and 2017, the nation’s revenue from oil stood at N1.29 trillion, N1.16 trillion and N1.52, respectively.

    Mr. Fowler said the trend had adverse effects on the ability of oil dependent countries to meet their development objectives.

    “For us in Nigeria, a decline in receipts from oil revenue and decline in accruals to states from the federal account has placed many states in a financial quandary, to the extent where basic obligation such as the payment of employee wage has become a perennial challenge,” he said.

    Mr. Fowler also said what the retreat hoped to achieve was part of efforts to ensure that the country must act differently by looking beyond oil as the mainstay of the economy.

    “Therefore, there cannot be any serious discussion on diversification of the nation’s revenue generation without reviewing the country’s tax regime for optimal performance.

    “Between the resource persons, we have invited our own staff and our stakeholders.

    “We hope to draw from a wide spectrum of perspectives on how best to move forward.

    “If the way forward requires a review of existing legal framework or legislative reform, there is no doubt in my mind that we have willing and able partners in National Assembly, FIRS Board and the Joint Tax Board”.

    He commended the National Assembly and traditional institution for their involvement in deepening tax collection in the country.

    Earlier, Oba of Lagos, Rilwan Akiolu, who received the FIRS Chairman at his palace, thanked the National Assembly for its contribution and support to tax revenue generation in the country.

    Mr. Akiolu said that the country needed good government, governance and leadership while urging them to be patient with the president in moving the country forward.

    He said that Lagos State had been contributing its quota in ensuring more tax revenue generation for the country.

    Also, at the courtesy visit were the Chairman, Senate Committee on Finance, John Owan-Enoh, the Chairman, House Committee on Finance, Babangida Ibrahim, members of the senate and house committees on finance.

     

  • FG retrieves N17bn in 6 months from tax defaulters – FIRS

    he Federal Inland Revenue Service (FIRS), said it collected N17 billion from tax evaders through the Voluntary Assets and Income Declaration Scheme (VAIDS) between June and December.

    The Chairman of the Service, Mr Babatunde Fowler disclosed this on Thursday in Abuja at a public enlightenment workshop on VAIDS organised by the Federal Ministry of Finance and FIRS.

    He said that the scheme encouraged voluntary disclosure of previously undisclosed assets and income for the purpose of payment of all outstanding tax liabilities to boost revenue collection.

    “Another N6 billion is expected to be paid before the end of December. Also, 50 million dollars have been declared by individuals with properties and investment overseas, so VAIDs is also providing foreign exchange for the country.

    “We also have many companies and individuals that have already come forward, asking questions on how they can key into the scheme.

    “All this will help improve the low tax ratio from six per cent to 15 per cent by 2020 and curb the use of tax havens for illicit fund flow and tax avoidance,” he said.

    Fowler reiterated that the VAIDs programme was applicable to Personal Income Tax, Value Added Tax, Company Income Tax, Stamp Duties, Rental income and Tertiary Education Tax.

    He urged tax evaders to come and voluntarily declare their tax before the grace period elapses because afterwards, there would be grave consequences for anyone who does not obey the tax laws of the country.

    The FIRS boss said also that there was no hiding place for those who hide their wealth overseas as the country had signed agreements with several developed countries like United Kingdom to get the names of Nigerians with properties and investment there.

    “The VAIDs programme offers a grace period from July 1, to March 31, 2018, for tax evaders to voluntarily pay back to government what they owe.

    “In exchange for full and honest declaration, the government promises to waive penalties that should have been levied and also waive the interest that should have been paid on overdue taxes.

    “Also, those who declare honestly will not be subjected to any investigation or tax audit after the grace period.

    “Through the programme, government intends to increase the country’s tax to Gross Domestic Product from 6 per cent to 30 per cent, and tax base from 14 million to 17 million in two years

  • FIRS generates N2.11tr in 7 months

    The Federal Inland Revenue Service (FIRS), through tax collections, generated the sum of N2.11 trillion as revenue from January to July, 2017.

    This is contained in a progress report of the FIRS from Jan. to July, 2017 made available to newsmen on Monday, showing their revenue performance and impact of the new tax regime.

    The aggregate revenue projected in the 2017 budget is N4.94 trillion, out of which oil revenue will contribute N1.98 trillion.

    This is based on an estimated crude oil production of 2.2 mbpd converted at an exchange rate of N305 to a dollar.

    Non-oil revenue for the year is projected at N1.37 trillion, which represents about 28 per cent of the budgeted revenue.

    Independent revenues, various recoveries and mining will account for the balance of about N1.58 trillion.

    A breakdown of the report showed that the FIRS from January to July this year collected N720.28 billion as Petroleum Profit Tax (PPT) while the Value Added Tax (VAT) revenue collected in the same period was N548.22 billion.

    The Federal Government had also collected the sum of N679.9 billion as Company Income Tax (CIT) and N91.4 billion as Education Tax collection.

    The report also showed that consolidated tax revenue for the first seven month of the year was N62.3 billion, which already supersedes the N59.8 billion generated from the area in the entire 2016 financial year.

    Also, the service recorded success in boosting its collection of National Information Technology Development Fund (NITDEF) levy, which went from N6.75 billion in 2016 to N9.87 in the first seven months of 2017.

    A further analysis of the report showed that the service generated more money from taxing the non-oil sector compared to the oil and gas sector.

    The report showed that non-oil tax revenue contribution was at 65.9 per cent while oil and gas contribution to revenue for the year was at 34 per cent so far.

    According to the report, tax improvements recorded so far was due to the latest steps by the service to increase tax collection.

    “FIRS have adopted e-services as a medium to achieve innovation, convenience and transparency of its operations to ensure that every effort is made to improve efficiency in collections and tax administrations.

    “A 45-day window from Oct. 5 to November 2017 was given to tax payers with tax liabilities to come forward and pay 25 per cent of the agreed tax liability, spreading the balance liability while waiving penalty and interest.

    “FIRS in collaboration with Corporate Affairs Commission, Central Bank of Nigeria and Nigeria Customs Service undertook a massive Nationwide registration exercise of new taxpayers in 2016.

    “We are also carrying out a sector-by-sector tax audit, which have increased compliance across all tax types and taxpayers categories. Over N8 billion have been recovered through this.

    “Also, the Voluntary Assets and Income Declaration Scheme (VAIDS) encourage voluntary disclosure of previously undisclosed assets and income for the purpose of payment of all outstanding tax liabilities to boost revenue collection.

    “All this will help improve the low tax ratio from 6 per cent to 15 per cent by 2020 and curb the use of tax havens for illicit fund flow and tax avoidance,” it stated.

    According to the report, the service was instrumental in the signing of a Bilateral Taxation Agreement on double taxation on income and capital gains.

    Also, the service had signed the Organisation for Economic Co-operation and Development’s Multilateral Instrument, which aims to tackle issue of base erosion and profit shifting by multinational companies operating in the country.

    The report showed there were currently a number of bills at the National Assembly that when passed would help to improve tax revenue.

    Some of the bills include the Stamp Duties Act Bill, 2017 and the Value Added Tax Bill, 2015.

     

     

    NAN

     

  • FIRS shuts MRS Oil over N497m tax debt

    The Federal Inland Revenue Service on Wednesday closed down an MRS Oil’s facility in Lagos over a tax debt amounting to N497.1m, an action the agency described as part of measures being taken against tax-defaulting companies in the country.

    An enforcement team, led by Mrs. Anita Erinne, reportedly sealed off the premises of the MRS Oil and Gas Company Limited at 2,Tin Can Island Road, Apapa, Lagos.

    But the company said through its accountant, who identified himself simply as Samson, that it had cleared the debt.

    A statement by the FIRS said the chief security officer of the oil company ordered security guards to prevent the FIRS team from going beyond the reception area, leading to a two-hour argument during which the MRS Oil’s workers refused to vacate their offices as directed by the FIRS officials.

    When the argument ended, Erinne ordered the main gates to the company to be sealed off.

    “The team also visited Kaplan International College Limited situated at 1, Adeola Odeku Street, Victoria Island, which was also sealed over a N50.5m tax debt,” the statement added.

    The enforcement team had, on Tuesday, shut the premises of Amyn Investment Limited, situated at 21/25 Broad Street, Lagos. The company is said to be indebted to the tune of N12.5m.

    A similar fate befell Floorenzo West Africa Limited, situated at 6, Boyle Street, Lagos, which owes N310m, it stated.

    The FIRS gave the names of others affected by the closure as the FDHL, situated at 9/11, Osborne Terrace House, Udi Street, Osborne Ikoyi, said to own N22.3m; and Nadabo Energy Limited, whose debt was given as N24.9m.

    The enforcement team of the FIRS had last month sealed off four companies in Lagos and Port Harcourt for reportedly failing to meet their tax obligations totalling N630m.

    Erinne had told the defaulting firms that the companies’ premises would be unsealed when they cleared their outstanding tax bills.

    She warned the workers not to unseal or tamper with the FIRS seal until the debts were cleared and warned that any attempt to remove the seal would be a contravention of the law.

  • VAIDS: FIRS, JTB share data of high income earners to drive tax compliance

    The Federal Inland Revenue Service (FIRS) and Joint Tax Board (JTB) have started sharing data of high net worth individuals to profile income earners and taxpayers and get them to pay appropriate taxes.

    TheNewsGuru.com reports that twelve states have signed the Memorandum of Understanding (MoU) under the Voluntary Assets and Income Declaration Scheme (VAIDS).

    The JTB also announced on Monday that it had hired a consultant to ensure that the databases of states’ tax authorities and the FIRS speak to each other.

    The integration of data will help data sharing among states, improve compliance and tax revenue.

    The Executive Chairman of FIRS and JTB, Mr. Tunde Fowler, announced the MoU with states on VAIDS in Abuja at JTB’s 138th meeting.

    He said the integration of data among states between FIRS and JTB would help to identify high net-worth individuals, track their tax status and compliance. He announced that there are no untouchables as regards the implementation of VAIDS

    Fowler said that the Federal Government has demonstrated an uncommon political will to entrench tax compliance in Nigeria, saying issues of taxation are taking a centre stage in the country.

    ”Speaking on behalf of the FIRS and the JTB, I want to assure you that we have received the blessing and political will of Mr. President, the Acting President to implement VAIDS.

    ”The Executive is behind us, the Senate, the House of Reps, are behind us and the Judiciary is behind us. The government is behind us. It is now left for us to perform our duties in the right and best way.

    ”A lot of special things are happening to the country. We are changing the financial profile of the country and of course, taxation is in the forefront. I can’t recall any time in the past when we had had such integration and cooperation. Our vision is to ensure that the governments, at all levels have enough resources to provide essential facilities to everyone. We are also moving away from taxes based solely on oil—that are not predictable to non-oil taxes”.

    ‘I am Happy to announce that at no time in the history of the FIRS have states and JTB have enjoyed this level of collaboration that we are enjoying today. Collaboration is important. States cannot be said to be doing well if the FIRS is not doing well. In the same vein, FIRS cannot be said to be doing well if states are not doing well.

    ”Between 25th and 29th September 2017, the African Tax Administration Forum, ATAF will be meeting in Abuja. Leaders of tax authorities will be in attendance. Many will come with their ministers. We believe that collaboration between heads of tax authorities and Ministers of Finance is healthy for tax work. We will encourage them to come.

    ”In the same vein, we expect that all of you (Chairmen of State Internal Revenue Services) will be in attendance and at least one other person—possibly your commissioner of Finance.

    At the enlarged meeting of the JTB, convened mainly to discuss stakeholders’ implementation of VAIDS, the body ratified the election Chief Oseni Elamah, former Chairman of Edo State Board of Internal Revenue, as the new Executive Secretary of JTB.

    Mr. Elamah takes over from Mr. Mohammed Lawal Abubakar, a Director with the FIRS, who has led the JTB Secretariat for seven years.

    Fowler thanked the JTB members for their activities on the Tax Thursday and further urged them to put more efforts in observing the weekly tax education programme.

     

  • 2017 Budget: FG tasks FIRS, Customs on improved revenue generation

    The Federal Government has challenged its revenue generation agencies, particular the Federal Inland Revenue Service, FIRS and Nigeria Customs Service, NCS, on meeting up with their targets in other to generate adequate funds to implement the 2017 budget.

    This was revealed by the Minister of Budget and National Planning, Senator Udoma Udo Udoma.

    TheNewsGuru.com reports that President Muhammadu Buhari last year presented a proposal of N7.298 trillion for the 2017 budget, which is a 20.4% increase over the 2016 estimate.

    The Minister explained that in spite of criticisms about government borrowings, the country’s fiscal deficit is still well within the three per cent (3%) limit and government is keeping very tight control on the size of the budget to make sure the fiscal deficit remains within the 3% threshold.

    The Minister who was speaking at the 2017 breakdown session said although certain developments affected the realization of projected government revenue last year, the administration is working hard to ensure increase in revenues to fund the 2017 budget.

    “In terms of implementation of the Budget, we are making strenuous efforts to find the resources required. We are challenging our revenue generating agencies, particularly the (Federal Inland Revenue Service) FIRS and Customs, to improve their efficiencies and broaden their reach so as to achieve the targets set for them in the 2017 Budget”, he explained.

    He added that government will strive to maximize the revenues it can generate from the oil and gas sector as it is clear that the foreign exchange generated from the sector is critical for government’s plans to diversify to the non-oil sectors.

    As government is introducing measures to improve on the efficiencies in that sector to increase Government’s take, the Minister said “we are also engaging more extensively with the communities and people of the Niger Delta to minimize disruptions to oil production”.

    Reviewing the 2016 Budget performance, Senator Udoma said there was reasonable progress on implementation and achievement of set targets even though aggregate revenues was less than projections, mainly due to disruptions in oil production in the Niger Delta region.

    The developments in the oil sector, according to him, adversely impacted oil revenues and foreign exchange receipts, and also negatively affected non-oil revenues as non-oil activities are critically dependent on the foreign exchange generated by the oil sector.

    “As at year-end, FGN’s 2016 actual revenue was N2.95 trillion (76.4% of the N3.85 trillion budgeted). Oil revenue was N697.8 billion (97.2% of budget); Company Income Tax (CIT) and Value Added Tax (VAT) collections were N457.91 billion and 108.72 billion respectively, representing 52.8% and 54.8% of amounts budgeted; while Customs collections of N247.42 billion implied a 63.6% performance, he explained.

    Despite the shortfall in revenue, he said government met its debt service obligations and personnel costs while overhead costs were largely covered.

    He pointed out that although capital expenditure suffered because key recurrent spending like debt service and payment of salaries had to be met first, the amount of N1.22 trillion released for capital under the 2016 budget remains the highest aggregate capital releases for a single fiscal year for Nigeria. “This was achieved despite the lower oil prices and revenue shortfalls, which underscores the government’s commitment to investing in critical infrastructure”, he noted.

    The Minister explained that in designing the 2017 Budget, certain critical international factors that affect Nigeria as a country were considered, including the protracted period of lower oil prices, major macroeconomic realignments in China, increasing divergence in monetary policy in major economies, uncertain economic, political and institutional implications of BREXIT, weak demand in advanced economies and its spill-over effects; and geopolitical tensions in several countries.

    On the domestic front also, the budget had to be designed at a critical time when the economy was experiencing contraction in growth (-2.06% in Q1 2016, now -0.52% in Q1 2017), insurgency and Insecurity parts of the North East, crude oil theft and pipeline vandalisation, foreign Exchange (FX) scarcity and Exchange rate tension.

    External reserves were down to US$26.59 billion in May 2016 but now about US$30.28 billion, high Unemployment rate (from 13.9% as at Q3 2016 to 14.2% in Q4 2016), and inflation (18.55% as at December 2016, 16.25% as at May 2017), he added.

    The Economic Recovery and Growth Plan (ERGP), which was launched early this year, is meant to address these economic challenges. The Minister pointed out that although the 2017 Budget was prepared before the finalisation of the ERGP, it drew extensively from the policies set out in the ERGP.

    He explained that the 2017 Budget reflects “our fiscal plan to restore the economy to the path of sustainable and inclusive growth, the specific goals and targets of which are set out in the 2017 – 2020 Economic Recovery and Growth Plan (ERGP)”.

    The Minister said the 2017 Budget is an infrastructure Budget and government takes transportation very seriously, which is why so much has been voted for roads and railways.

    He also said ease of doing business is very critical to government because it wants to turn the country from a nation of importers to a nation of producers.

    Reflecting on the late passage of the last two national budgets, the Minister said in the months ahead, the Executive will work with the National Assembly to ensure that Nigeria returns to a predictable January – December fiscal year, with the budget signed into law ahead of the commencement of the fiscal year in the near future.

    Also speaking at the event, the Director General of the Budget Office, Mr Ben Akabueze, said government is determined to bridge the gap between citizens and government by the measures being taken to promote greater transparency and accountability in the entire budget framework. “Our membership of the Open Government Partnership (OGP) has strengthened our resolve to enhance stronger citizen engagement and improved public service delivery”.

    Akabueze disclosed that the Budget Office is implementing a Citizen’s Portal on its website to enhance citizens’ participation across the entire budget cycle. In addition, a dedicated hotline for citizens with queries or questions on the budget is also being activated.

  • We are registering only corporate taxpayers for TIN – FIRS

    …Says it no longer registers individuals for TIN

    Mr Wahab Gbadamosi, the Public Relations Officer, Federal Inland Revenue Service (FIRS) says the service presently registers only corporate taxpayers for issuance of Tax Identification Number (TIN).

    Gbadamosi, who said this in an interview with the News Agency of Nigeria (NAN) in Abuja on Saturday, said the service no longer registers individuals for issuance of TIN.

    He said the development was due to the directive by the Senate Committee on the Federal Capital Territory (FCT) to stop collection of Personal Income Tax (PIT) in Abuja.

    “The FIRS no longer registers individuals for TIN, we only register corporate taxpayers.

    “We used to capture individuals in Abuja when we were collecting PIT for FCT.

    “We operate like a state in Abuja but about two months ago, the Senate Committee on FCT, chaired by Sen. Dino Melaye directed that the FCT minister should set up the FIRS board to take over collection of taxes in Abuja,’’ Gbadamosi said.

    According to him, the Joint Tax Board (JTB) has a provision for issuing TIN and can issue TIN to individual taxpayers.

    According to him, JTB is an umbrella body for states.

    He said that if anyone wants to obtain individual TIN can go to JTB office in Asokoro, FCT to register and obtain TIN.

    Gbadamosi added if anyone registered for individual TIN in Lagos or other state and have not been issued TIN, can also visit JTB Asokoro.

    The Spokesperson urged individuals who want to register for TIN to check JTB website, adding that they don’t need to go to any tax office as there were processes of obtaining TIN.

    “It is not possible that one registers for TIN and was not given. If you registered in Lagos or any other state, you will be given TIN immediately.

    “If you were truly captured in any state and was not given TIN, then visit JTB office

    “TIN is unique to a corporate entity or individual. Once you have it, it is okay for any part of the country,’’ he added.

    According to him, the use of TIN is primarily for everyone whether private or corporate, as the use of TIN is not only for civil servants but cuts across.

    TheNewsGuru.com reports that the taxpayer TIN is an electronic system for taxpayers’ registration nationwide in Nigeria, and it is unique to an identified taxpayer for life.

     

     

     

    NAN

     

  • Tax default: Federal Inland Revenue Service seals Warri hotels, firms

    WARRI – Warri, the oil city had a taste of the seriousness of the determination of the Federal Inland Revenue Service when its officials swopped on the town and sealed a number of firms including hotels.

    For guests and management of Golden Tulip, Warri Airports Hotels, Effurun, it was a massive show of embarrassment Uvwie as the Federal Inland Revenue Service, FIRS, on Tuesday evening sealed the hotel for tax liabilities.

    The team which went around Warri and Effurun to seal defaulting companies showed early sign of seriousness when they sealed Kevwe Construction Company, Okwokoko, for N84.4 million VAT default but granted Ishaka Hotels and Tebelos Hotels, both along Refinery Road, Effurun, a day grace based on their undertaking to resolve their liabilities.

    Led by Anita Erine, the tax body’s enforcement team showed no mercy, and brooked no intervention from any quarters as they insisted that defaulting firms, especially Golden Tulip hotel which has accumulated Value Added Tax liabilities of over N15.6Million through 2014 to 2016 years of assessment must pay or show evidence that they have paid before any discussions could take place.

    According to Ms Erine: “The chairman of FIRS, Dr. Babatunde Fowler, has signed a warrant of distraint to seal this company (Golden Tulip) and the only way we can do otherwise is for you to pay up what you owe or show proof that you have paid.”

    Efforts by one of the management staff on ground to explain that the hotel has not been in operation from the said assessment period proved abortive as the enforcement team insisted on documentary proof.

    The FIRS team also rejected appeal by the hotel staff that she should speak to the owner, a former minister and Delta politician. The enforcement team leader repeatedly insisted, “Sorry, we are not allowed to speak to people on phone. If you have no proof of payment, we are sealing you.”

    The encounter got to a climax after nearly an hour of exchange as the FIRS team, aided by mobile policemen went round the hotel rooms, alerting guests and staff to vacate the premises before placing its seals on the entrances and its gates chained under lock and key.