TAX NEWS - 2010

Nigeria Tax: FIRS uncovers N1bn tax evasion in Abia firm

The Criminal Investigation Department (CID) (Compliance and Enforcement Group) of Nigeria Federal Inland Revenue Services (FIRS), Abuja says it has uncovered about N1 billion tax evasion in a manufacturing firm based in Aba, Abia State.

In a letter to the company, International Equitable Association, situated at No. 1 Nicholas Road, Umungasi Aba, signed by one Hussaini Umar , dated April 22, 2010, entitled, "International Equitable Association (Industrial & Commercial ) Ltd, Tax Investigation (2005-2008 Accounts), FIRS alleged that the company has failed to file its tax returns for 2007-2009, despite repeated requests.

The letter further stated that the failure amounts to an offence under the provision of the tax law, stating that it had already been referred to its Legal and Prosecution department for action.

In the summary of observations/findings attached, which The Nation sighted, it urged the company to respond to the issue and tender any additional document or written submission to its CID office in Abuja.

In its summary of findings, FIRS alleged that unreported turnover, which came from sales in 2006 and 2007 amounted N1,176,199,823.

It also stated that sales to Brian Munro, a firm owned by one of the former directors , between 2005 and 2008 amounted to N154,266,608. It was not reported and the tax was evaded, it said.

FIRS then demanded an evidence to prove that the sales were reported in the financial statement of the company, if it claims so, and alleged that it was not reported and that this should have been done by the directors to evade tax on the amount.

But the Managing Director of International Equitable Association Ltd, Chief John Onwukwe, said he was not responsible for the tax evasion. He pointed fingers at his predecessor.

"The incident happened during the tenure of the former managing director and his team who grounded the company and fled the country, refusing to come and answer to the allegations of fraud levelled against them. come and investigate us."