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Revenue Service arrests Air Nigeria MD over N 4.86 billion in Back Taxes

By on June 19, 2012

The Federal Inland Revenue Service (FIRS) has arrested the Managing Director of Air Nigeria, Kinfe Kayssa,y for failure of the company to remit Value Added Tax (VAT) and Withholding Tax (WHT) amounting to N 4.86 billion payable to the coffers of the Federal Government.

The arrest was made in Lagos by members of the FIRS Debt Enforcement and Special Prosecution Unit led by Assistant Director, James Binang.

The management of FIRS is said to be displeased concerning the failure of Air Nigeria to pay its taxes. Another bane of contention surrounded how the company was able to secure Tax Clearance Certificates (TCCs) despite its huge tax liabilities.

Binang said, “The company’s refusal to deduct and remit taxes as well as its failure to file tax returns amount to criminal offences. Explanations were also sought from the company about the Tax Clearance Certificate alleged to have been obtained by Air Nigeria despite its tax liabilities, which was a requirement to secure its expatriate quota.

“Kayssay agreed that the company actually had tax liabilities to pay but pleaded for more time to settle the liabilities and comply with the necessary legislation as regards filing of tax returns.”

The management of Air Nigeria in its response said the tax liabilities were still in dispute and were actually incurred by Virgin Nigeria before Jimoh Ibrahim acquired the company.

The company said, “These taxes have been in dispute and needed to be reconciled and agreed upon. The FIRS is, however, not patient with such reconciliations but resorted to a military approach in a civilian era. Air Nigeria is not indebted to the government on current taxes since the acquisition of the airline by Dr. Jimoh Ibrahim.

“We, therefore, consider the FIRS action as uncivilised and condemnable. We are at a loss as to what the FIRS has been doing for the past eight years without collecting the taxes from previous management of the airline. We assure the general public that Air Nigeria cannot be intimidated by this crude approach and will not be ready to give bribe to any person no matter how highly placed. We will brief the general public as the issue progresses.”