Edo Seals Nine Companies Over N8.98bn Unremitted Taxes

The Edo State Internal Revenue Service (EIRS) has sealed the premises of nine companies operating in Utesi Community, Ikpoba-Okha Local Government Area of the state, over alleged unremitted tax liabilities totalling ₦8.982 billion.

The affected companies, predominantly Chinese-owned firms, were sealed following their alleged failure to meet statutory tax obligations, according to a statement issued by the EIRS.

The companies include Rongtai Plastic Company Limited, Rongtai Hardware Limited, Rongtai Energy Technology Company Limited, Rongtai Building Materials Company Limited and Rongtai Food Company Limited.

Others are Five Star Wire and Cable Company, Xin Guo Technology Nigeria Limited, Changrong Wood Nigeria Limited and Shunda Nigeria Enterprise.

The revenue service said the outstanding liabilities arose from the companies’ failure to register their employees for Pay-As-You-Earn (PAYE) tax, file annual employers’ tax returns, and deduct and remit PAYE taxes as required by law.

According to the statement signed by Courage Eboigbe, Head of Corporate Communications and Taxpayers Enlightenment Service, the affected companies had been individually notified of their established tax liabilities before the enforcement exercise.

Eboigbe said the companies failed to settle their outstanding obligations despite repeated reminders and demands for compliance, prompting the service to invoke its legal powers of distraint.

He said the enforcement exercise was carried out pursuant to valid court orders.

The EIRS stated that the affected premises would remain sealed until the companies settled their outstanding tax liabilities, adding that the seals would only be removed after the defaulting firms had fulfilled their tax obligations.