OSIRS intensifies revenue drive, sanctions firms

OSUN State Internal Revenue Service (OSIRS) on Tuesday shut five federal establishments in the state for defaulting in payment of taxes to the state to the tune of N219.9 million.

The defaulting federal establishments include the Nigeria National Petroleum Corporation (NNPC) Retail Mega Station in Osogbo to the tune N28 million covering 2008 and 2013; Bank of Agriculture, Osogbo branch, N43.4 million, covering 2006 and 2013; National Centre for Technology Management (NACETEM); Obafemi Awolowo University (OAU), Ile-Ife, with a liability of N36.6 million covering 2006 and 2013.

Others are African Regional Centre for Space Science Technology, OAU, Ile-Ife with liability of N80.1 million covering 2006 and 2011 and International School, OAU campus with liability of N31.8 million covering 2006 and 2011.

Still, other federal establishments defaulting in taxes have also been listed and served notice to be shut by the revenue office as part of its new drive for revenue by the state authorities.

The Acting Chairman/Chief Executive Officer, OSIRS, Mr. Dayo Oyebanji, who led the revenue team to the affected establishments, said that the revenue service took the action after it had secured court order to carry out the exercise in accordance to the relevant law of the land.

He said: “The establishments were sealed pursuant to the provisions of Section 104 of the Personal Income Tax Act 2004 as amended in 2011.

Oyebanji also warned other federal establishments that are yet to join Integrated Personnel Pay Roll System (IPPIS) to remit their taxes to the state without further delay.

Those he said are yet to join IPPIS pay roll system include FERMA, INEC, NSCDC, NECO, Nigeria Prison Service (NPS) and Nigeria Customs Service (NCS).

He explained that the revenue service is set to begin criminal prosecution of all tax defaulters in the state to ensure that the defaulters are made to face the full wrath of the law.
The OSIRS chief noted that all establishments shut would not be re-opened for business until all unremitted taxes are paid to the state government.

“The law is clear on issues bordering on tax evasion and the state revenue service will continue to take the advantage of the provisions of the law to prosecute recalcitrant corporate organizations and individuals without further notice.

The OIRS boss added that any taxable person or corporate organizations, who have not filed their tax returns with the revenue service within stipulated 90 days is in breach of the provisions of the law, which is an offence that is punishable under the tax laws.

He listed such infractions to include non-deduction of taxes (PAYE, withholding tax), non-remittance of PAYE taxes deducted from employees, non-deduction/remittance of taxes by casual workers, non-filling of tax returns at the stipulated statutory period, under declaration of income, concealment of relevant information (income, fringe benefits) with a view to evading tax, failure to process electronic tax clearance certificate (e-TCC) cards for employees as a result of non-remittance of tax deducted from their emoluments.

He stressed that the revenue agency in the state has intensified on advocacy, publicity and enlightenment programmes on the statutory obligations of the citizenry to voluntarily comply by paying their taxes promptly as prescribed in the constitution of the country and the applicable tax legislations, but in spite of the efforts, many corporate organizations and individuals still engage in several infractions.

He however expressed gratitude to those who have continue to give their unalloyed support to the state by performing their civic duties as at when due.