FIRS Shuts Down Two Companies In Abuja Over N100m Tax Debt

FIRS

Two companies Eurobond Construction Company Limited and Design and Build Limited were sealed by the Federal Inland Revenue Service on Thursday, in Abuja over unpaid taxes totalling N100.8 million. The two firms owes N70.9m and N29.95m respectively for the year 2014 and 2015.

Mr Chinazo Edeh which led the enforcement team said the exercise was part of measures aimed at improving revenue generated by the the government.

“Take notice that the owners of these premises have failed to comply with the company‘s tax obligation under the Value Added Tax Laws of the Federation of Nigeria.

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“Any officer or agent of the company involved in this contravention is liable for non-compliance and punishable under the relevant VAT Act,” a notice at the entrance of the office of Design and Build Ltd reads

Edeh explained that the companies failed to remit their taxes despite notices served on them to to do so.

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

At Eurobond, the FIRS officials encountered hostility, as the firms management argued that it has no tax liability.

A senior official of the company told the enforcement team that the contract upon which the tax liability was to be paid was executed for the government of Zamfara State and the amount payable by the company was deducted as withholding tax by the state government.

But the enforcement team said FIRS’ records show otherwise and shut the company.

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