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Nigeria News: Oil companies sealed off over default in tax payments

The offices of two oil companies: Continental Oil and Gas and Con Oil Producing Limited have been sealed off by the Federal Inland Revenue Service, FIRS in Lagos over tax arrears totaling $610.6 million dollars.

 

While Continental Oil & Gas owes the FIRS $373.7M dollars, Con Oil Producing Ltd. has arrears totalling$236.8 million dollars. The sums represent Withholding Tax, Value Added Tax, VAT, and Companies Income Tax, CIT arrears.

 

Tax Controller, Large Tax Office, LTO, (Oil and Gas), Mrs. Olufunmilola Adediran who led the Search and Seizure Team, explained that FIRS had sent several Assessment Notices to the two companies: Continental Oil and Gas and Con Oil Producing Limited over tax arrears of $610.6 million.

 

Said Mrs. Adediran: “We sent several assessment notices on the pendency of these arrears. FIRS also wrote two weeks ago to alert the companies of the team’s visit today, Wednesday 6th May 2009, to seal up their offices if the two companies do nothing to offset the arrears.

 

Sections 33, 34 and 35 of the Federal Inland Revenue Establishment Act 2007, empowers the FIRS to seal up the premises of taxpayers/companies that fail to fulfil its tax obligations.