Two oil companies operating in Edo State
have been slammed with notices of non-compliance by the state
government, following their failure to remit taxes worth over N211m.
According to a statement by the Edo
State Internal Revenue Service on Friday, the taxes were amounts
deducted from the personnel emolument of the firms, which were not
remitted to the state government.
The EIRS Tax Enforcement Director, Mr.
Victor Okube, who led officials of the agency during an enforcement
exercise, where the non-compliance notices were pasted on the premises
of the firms, explained that both companies failed to remit their
Pay-As-You-Earn taxes as enshrined in the Personal Income Tax Act (2011)
as amended.
Okube noted that the service of notice
of non-compliance was to serve as a deterrent to other companies and
establishments operating in Edo without fulfilling their tax
obligations.
According to him, all PAYE taxes were
expected to be remitted not later than 10 days of every month as
enshrined in the PIT Act, as amended.
The EIRS chief, who noted that officials
of both companies had begun efforts towards clearing the tax owed,
however, urged them to remit all outstanding taxes due to the state
government or risk being sealed off.
“Management of both oil firms have seven
days to remit all outstanding taxes; failing to do so, the EIRS will
initiate legal process for debt recovery,” Okube said.
He also reiterated the commitment of the
state government towards the provision of basic infrastructure, through
a tax friendly environment which allows business activities to thrive.
The revenue agency had in April 2016
relaxed the presentation of Tax Clearance Certificates as a requirement
for the registration of vehicles in the state.
The acting Executive Chairman of EIRS,
Mr. Emmanuel Usoh, had explained that the new policy became necessary to
shore up the state’s IGR and block financial leakages occasioned by the
activities of touts and middle men involved in the issuance of fake
vehicle documents.
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