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FIRS shuts more tax-defaulting companies

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FIRS

FIRS

The Federal Inland Service (FIRS) has continued its crackdown on tax-defaulting companies, sealing off their premises in Lagos and Abuja.

In Lagos, the team led by Mr. Umar Bukar Gana sealed off Mayssa International Limited situated at 202 Etim Inyang Crescent, Victoria Island, Lagos, over a tax debt of N133.8 million.

The managing director, who identified himself as Mr. Robert told the team that while the company owed, the debt was not on the scale the FIRS claimed. He added that the organisation was making efforts to pay, an assurance that did not impress the team, which shut the premises.

The team also sealed Modesty Properties Limited, situated at 255, Muri Okunola Street, for a tax liability of N30.7 million. The exercise also affected Joza Global Logistics Limited, situated at 8, Ribadu Road Ikoyi, which was shut for owing N62.4million.

In Abuja, the FIRS team leader, Mrs. Ruth Mandeun ordered the shutdown of the premises of Hakimco Automobiles Limited at the city’s Central Business District. The company is indebted to the tune of N335, 902 million. The manager claimed to have paid the debt, but when given 30 minutes to produce evidence of payment, he disappeared and the company was shut.

On Wednesday in Lagos, the premises of Ace Products and Services, situated at 20, Sanni Ashmiu Close, Awoyaya, Lagos, was shut over a tax debt of N157.3 million.

However, a staff member of the company refused to open the gates for the officials despite properly identifying themselves as FIRS staff. The refusal to open the gates lasted about 15 minutes, after which policemen attached to the team forced the gates open for Gana to order company staff out of the premises for the company to be sealed off.

The team also visited Globasure Technology Limited at 10, Ashabi Adewale Close, Lekki Phase 1, Lagos. The company is indebted to the tune of N36.5 million, accumulated between 2007 and 2014.

The company’s managing director admitted that the organisation owes, but that the debt was below what the FIRS claimed. He appealed to the team for more time, blaming the failure to pay on the harsh economic situation in the country. His plea was, however, ignored and the company was shut.



4 Comments
  • yusuf Mikail

    FIRS should insist on, negotiate and enforce a payment plan instead of shutting down companies and causing more unemployment and shortchanging government by inadvertently reducing the tax base. Taxes has ceased for employees ordered out of the premises of the company to be sealed off. Instead of shutting down the economy, FIRS should be trained to dialogue with the Company Management. I guess this is more difficult than sealing off.

    • 100%Iboguy

      Your suggestion is a very sensible one as that is what is done all over the civilised world. However, I am suspecting that the sealing off may be the last step when all other steps have failed.

      • Victoria

        In some cases their approach is rather uncivilized, uncordinated and a force approach. I was so angry and disappointed with the enforcement team when I had to stand in for my client whose premises was sealed off today for owing taxes, meanwhile payments had been made to FIRS over two months ago. They would not listen to reason or wait for us to produce evidence of payments, however this is something they should have verified or can verify from their office. The drive for tax compliance is good but their approach is totally far behind.

        • 100%Iboguy

          I guess it is due to the Nigerian factor of abusing power and treating others shabbily.