N3.4bn tax debt: FIRS to sell properties of 52 firms

The Federal Inland Revenue Service is to dispose off the properties of 52 companies over tax debts valued at about N3.4bn.

The Punch reports that already, the Legal Department of the Service had begun the process to sell the properties in a bid to effectively implement the initiative.

It was learnt that apart from the 52 companies, ten other companies are still under investigation for tax evasion while enforcement action is expected to be carried out on another 10 companies in Lagos with a total tax value of N727.42m.

It was  gathered that based on an investigation conducted by the FIRS, some private organisations that own properties in Nigeria had not been paying any form of taxes.

Following this discovery, it was learnt that the agency took a review of all properties that were under corporate ownership.

By law, where a company has not filed or paid any taxes, the tax authority used an estimated assessment based on the company’s turnover.

In order to ascertain the level of turnover, the FIRS wrote to commercial banks asking for details of the turnover of some of the affected companies.

The first letter to commercial banks from the FIRS, findings showed, was written in May last year.

The letter requested a list of companies, partnerships and enterprises with a banking turnover of N10bn and above.

The move was aimed at ascertaining those companies that are compliant with the tax laws and those that are not compliant.

The second letter according to findings was written to all commercial banks in October 2018, and the responses from the banks are currently being reviewed by the FIRS.

It was learnt that the move was part of the special programme to drive compliance.

The special programme is targeted at recovering tax liabilities from non-compliant companies that are currently being assessed for tax under the Company Income Tax Act.

Speaking on the steps to ensure compliance, the FIRS Chairman, Mr Tunde Fowler, had on Thursday during a meeting with the acting Inspector-General of Police, Mohammed Adamu, explained that the agency would collaborate with security agencies this year to go after wealthy tax defaulters.

He had requested the Nigeria Police to assist the FIRS to bring the tax defaulters to pay their taxes.