FIRS Files Six Counts Tax Charges Against Property Company
The Federal Government has filed “tax evasion” charges against a property company, Well Property Development Company Limited.
The FG, through a suit filed on its behalf by the Federal Inland Revenue Service (FIRS), marked FHC/ABJ/CR/293/2024 and dated June 21, 2024. took the firm before the Abuja Federal High Court on a six counts.
In the suit, Federal Republic of Nigeria is listed as complainant, while Wells Property Development Company Limited is joined with nine individuals as defendants.
Among other things, the company was accused of various offences including, false declaration of earnings, while carrying our taxable services.
The FIRS accused the firm of failure to file correct and complete income tax returns in the prescribed form and manner for the purpose of paying relevant tax administered by FIRS, an offence punishable under Section 55 of the Companies Income Tax Act as amended.
Count two stated that the firm allegedly furnished FIRS with false information regarding the company’s income which is an offence punishable under Section 25 of the Value Added Tax Act of 1993 as amended.
Other counts bordered on false declaration of tax returns for the years 2019 to 2022 and failure to deduct and remit all relevant taxes, which is an offence punishable under Section 40 of the FIRS Establishment Act 2007.
Confirming the story today to our Correspondent, the Special Adviser on Media to FIRS Chairman, Dare Adekanmbi, said the affected Company and individuals in the said case defaulted in their tax obligations.
He explained that Section 55 of the Companies Income Tax Act (CITA) as amended by Finance Act, 2020 set specific procedure and requirement for foreign companies that derive profit or are otherwise taxable in Nigeria to file tax returns with the Nigerian tax authorities.
“The Finance Act, 2020 amendment also removed the ambiguities in law and emphasised the obligation of non-resident companies to file tax return in the form and manner prescribed by the Federal Inland Revenue Service. By the provision of the CITA, non-resident companies are required to file their tax returns in Nigeria by submitting the following: 1. The company’s full audited financial statements and the financial statement of the company’s Nigerian operations, attested by an independent Chartered or Certified Accountant in Nigeria; 2. Tax computation schedules based on the profits attributable to the company’s Nigerian operations; 3. A true and correct statement, in writing, containing the amount of profits from each and every source in Nigeria; and 4. Duly completed Companies Income Tax Self-Assessment forms.”
Explaining further, he said Section 40 of the FIRS Establishment Act 2007, also stated that “Any person who being obliged to deduct any tax under this Act or the laws listed in the First Schedule to this Act, but fails to deduct, or having deducted, fails to pay to the Service within 30 days from the date the amount was deducted or the time the duty to deduct arose, commits an offence and shall, upon conviction, be liable to pay the tax withheld or not remitted in addition to a penalty of 10 percent of the tax withheld or not remitted per annum and interest at the prevailing Central Bank of Nigeria minimum rediscount rate and imprisonment for period of not more than three years.”
