N100m Tax Debt: FIRS seals two firms in Abuja

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ABUJA, JULY 29, 2016 – The Federal Inland Revenue Service, Thursday, sealed the offices of two Abuja-based firms over tax liabilities totalling N100.8 million.The affected companies are Eurobond Construction Company Limited, which owes N70.9m for 2014 and 2015; and Design and Build Limited, indebted to the tune of N29.95m for 2014 and 2015.

The enforcement exercise is part of measures aimed at improving revenue to the government.

The FIRS enforcement team, led by Mr Chinazo Edeh, shut the premises of Design and Build at about 12:23pm and at about 3:17pm, the same to Eurobond.

A notice of enforcement placed at the entrance of the office of Design and Build Ltd reads:”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.

“Any officer or agent of the company involved in this contravention is liable for non-compliance and punishable under the relevant VAT Act.”

Eden 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.

DCSL 90X780

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