FIRS Arrests Management of Sweet Sensation, UTC Others Over N 1.8 billion in unremitted Taxes

The Federal Internal Revenue Service (FIRS) has arrested senior management of several companies for tax related offences.

The affected companies are Sweet Sensation, UTC and Pivotal Engineering.

Abu Stephen, Assistant Director of Legal and Prosecution Department of the FIRS made the arrests during an enforcement drive aimed at recovering taxes owed the federal government in the form of Company Income Tax (CIT), Education Tax (EDT), Withholding Tax (WHT) and Value Added Tax (VAT).

According to a statement released by FIRS spokesman, Emmanuel Obeta, the companies were given several notices to remit their tax liabilities. The companies affected include Pivot Engineering Limited (N609,911,992.36) Reliance Telecommunications Limited (N592,756,627) HITV Limited (N309,500,065.55), UTC Nigeria Plc (N277,589,163.74), Sweet Sensation (N155,483,013) Entertainment Highway Limited (N197,444,964.55) and John Holt Nigeria Limited (N33,073,487.52).

Excerpt from the statement reads, “However, some of the companies had admitted their outstanding tax liabilities when the enforcement team called at their offices. For instance, Mr. Opedemowo Olayemi, the Chief Accountant of Sweet Sensation Confectionary Limited, said the company was owing N60 million for VAT alone.

“Also, Mr. Dada Arokoyu of UTC and Mr. Muyiwa Fojude of Pivot agreed that their companies had outstanding tax liability to settle with the FIRS.

“Similarly, when the team visited HITV Ltd, Entertainment Highway Ltd and Reliance Communications Ltd, their offices were under lock and key, but security at the gates attended to the enforcement team.

“At HITV and Entertainment the team was told that the GTBank sealed off the premises following a court order. Reliance Communication was sealed upon the directive of the Chairman of the company.

“The arrest is a warning to other organisations and individuals on the need to ensure deductions and remittance of their tax obligation as provided by Part V1, Section 40 of the FIRS Establishment Act 2007.

It continues,“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.’’