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Published On: Thu, Jun 12th, 2014

FIRS threatens NICON Insurance, Luxury Hotels over tax default

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By Etuka Sunday

Federal Inland Revenue Service (FIRS) yesterday warned all companies and organisations in the country to comply with the tax laws by remitting taxes due to the government or be forced to do so.

The warning came after it attempted to seal-off NICON Luxury Hotel and NICON Insurance Limited for alleged failure to remit more than N90 million outstanding tax liabilities due to the government.

A statement by the Head, Communications and Liaison Department, Wahab Gbadamosi said that the company’s officials are currently held and being interrogated by the officials of the FIRS Special Investigation and Enforcement Unit.

The investigation, according to the statement, was aimed at recovering arrears of taxes accruing to government from Companies Income Tax (CIT), Education Tax (EDT), Withholding Tax (WHT) and Value Added Tax (VAT).

He said the Service had served series of notices on the companies earlier to pay their outstanding tax liabilities or be compelled to do so.

However, the companies had admitted their outstanding tax liabilities when the enforcement team called at their offices.

Gbadamosi said the enforcement would serve as a warning to other organisations and individuals in the country on the need to comply with the tax laws.

“Section 40 of the FIRS Establishment Act 2007 provides that; “Any person who being obliged to deduct any tax under this act or the laws listed in the First Schedule to this Act, but fails to deduct, or having  deducted, fails to pay to the Service within 30 days from the date the amount was deducted or the time the duty to deduct arose, commits an offence and shall, upon conviction, be liable to pay the tax withheld or not remitted in addition to a penalty of 10 per cent of the tax withheld or not remitted per annum and interest at the prevailing Central Bank of Nigeria minimum re-discount rate and imprisonment for period of not more than three years,” he concluded.

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