Taxation: FCT-IRS Seals Hotel, School, Others

By: Wisdom Acka

Following tax evasion by some organizations in the Federal Capital Territory, the FCT Internal Revenue Service (FCT-IRS) has sealed off Regency Hotels, a school and three business premises.

Acting Director, Legal Service, FCT-IRS, Festus Tsavsar, who led the enforcement team, explained that closure of the premises was in line with a Court Order obtained by the Service.

Accordingly, the defaulting school and business premises are Gratias International School, Rural and Urban Homes Ltd, Trevari International Company and Phenomenon International Company.

Tsavsar explained that the hotel and business premises contravened FCT tax laws by refusing to file their annual returns, despite being issued several notices, including a court summon.

He said: “Today, we went out to execute the Court Orders, which ordered the FCT-IRS to seal off the premises of defaulting taxpayers that were brought before it.”

“We have been able to effectively comply with the court order by sealing off the premises as directed. We went to Gratias International School located in Games Village, Kaura, and sealed it off,” he said.

“The offence they committed was refusal to file their annual returns despite many notices, including a Court Summon but the school management refused to comply,” Tsavsar stated.

“We are at their premises and the management refused to attend to us; and refused to open their doors, despite many calls for them to do so to enable us to enforce the court order”, he restated.

Expressing concern over their continued refusal to comply with the tax law, Tsavsar explained that the action was simply tax evasion, which he described as a criminal offence.

The Director remarked that to worsen the matter, the school management decided to change their name to DGIS College to evade tax payment.

While adding that This is also a criminal offence, he regretted that “The school has not been paying their taxes at all, and also refused to file their annual returns since establishment.”

From the school, the team proceeded to Residency Hotels, No. 4, Port Harcourt Crescent, Area II, Garki, where it was also sealed for not filing annual returns.

The team then went to seal off Rural Urban Homes ltd in Utako, before heading to Trevari International Company and Phenomenon International Company – two business premises within popular Transcorp Hilton, Abuja.

Tsavsar, while warning owners of the affected property against attempt to unseal the premises, advised them to go to the court to obtain a court order before they could do so.

He added: “If they go against the Court Order and unsealed the premises by themselves, they have committed another criminal offence, and the court will order their arrest and they will be prosecuted in line with the tax law, particularly Section 81 of Personal Income Tax Law and upon conviction they will be jailed for six months in addition to a fine.”

Tsavsar equally warned that the FCT-IRS would go after all other tax defaulting companies and individuals; advising them to comply with existing tax laws, pay their taxes and file their annual returns.