Edo revenue service threatens oil firms over N221m tax

BENIN—EDO State Internal Revenue Service, EIRS, yesterday, gave two oil companies operating in the state, seven days notice to remit all outstanding taxes especially the Pay As You Earn, PAYE, taxes worth over N221 million deducted from their employees.

EIRS threatened that failure of the management of both companies to comply with the directive, it would initiate legal action for debt recovery.

EIRS Tax Enforcement Director, Mr. Victor Okube, who led officials of the agency during an enforcement exercise, where the non-compliance notices were pasted on the premises of the firms, explained that both companies failed to remit their Pay-As-You-Earn taxes as enshrined in the Personal Income Tax Act (2011) as amended.

He noted that the notice of non-compliance was to serve as a deterrent to other companies and establishments operating in the state without fulfilling their tax obligations.

According to him, all PAYE taxes were expected to be remitted at an interval of not more than 10 days of every month as enshrined in the PIT Act, as amended.

The EIRS chief, who noted that officials of both companies had begun efforts towards clearing the tax owed, urged them to remit all outstanding taxes due to the state government or risk being sealed off.

He reiterated the commitment of the state government to the provision of basic infrastructure, through a tax friendly environment which allows business activities to thrive.