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FIRS seals Abuja firms over N100m tax debt

By on July 30, 2016

The Federal Inland Revenue Service on Thursday sealed the premises of two firms operating in Abuja for failing to pay their tax liabilities amounting to N100.85m

Eurobond Construction Company Limited, according to the FIRS, had an outstanding tax liability of N70.9m for 2014 and 2015, while Design and Build Limited allegedly owed N29.95m for 2014 and 2015.

The enforcement exercise by the agency is part of measures aimed at improving the tax revenue to the government as well as ensure that all outstanding liabilities owed the service in form of taxes are recovered.

Members of the enforcement team of the FIRS led by the Team Leader, Mr. Chinazo Edeh, shut the premises of Design and Build at about 12:23pm, while Eurobond’s office was sealed at 3:17pm.

A notice of enforcement placed at the entrance of the office of Design and Build read in part, “Take note that the owners of this premises have failed to comply with the company’s tax obligation under the Value Added laws of the federation of Nigeria.

“Any officer or agent of the company involved in this contravention is liable for non-compliance and punishable under the relevant VAT Act.”

Edeh told our correspondent that the companies failed to remit their tax liabilities despite notices issued by the FIRS for them to do so.

He said the premises of the affected companies would remain shut pending when their outstanding liabilities would be paid.

While the enforcement team had a smooth operation sealing the premises of Design and Build owing to the cooperation of the management of the company, they met a stiff opposition at Eurobond, whose management claimed that the company had no tax liability.

For over three hours, the enforcement team battled to seal the premises of Eurobond, which claimed that the amount being claimed to be owed was supposed to have been settled by the Zamfara State Government.