N26bn Tax: Workers Stranded As FIRS Seals NDDC Headquarters In Rivers

*Advocacy Group Slams Tax Agency

EMPLOYEES of the Niger Delta Development Commission (NDDC) were
stranded yesterday following the sealing of the commission’s
headquarters in Port Harcourt, Rivers State by the Federal Inland
Revenue Service (FIRS).

It was gathered that the action was taken because of the failure
of the NDDC to remit about N26bn arrears of taxes it owed FIRS.

A source from the commission, who spoke in confidence, said the
commission was also owing the Rivers State Revenue Service billions
of naira, adding that the Rivers State Government might come for
their money after the actions of the FIRS.

It was observed yesterday that the main gate to the headquarters
and adjoining walls had over nine stickers with the inscription:
“Sealed by the Federal Inland Revenue Service.”

A resident of the area who identified himself as Peter said the
headquarters was sealed on Thursday.

He said workers, after waiting in vain to gain entry into the
facility, went back home.

He said: “We saw this seal on Thursday morning when the NDDC
workers were coming to work. The situation caused confusion. Many
workers left while some waited around.

“Some workers still came to work today but the gate was still
sealed. To be honest with you, I don’t know why a Federal
Government agency would seal off another federal agency.”

A non-governmental and advocacy organisation, Citizen Quests for
Truth Initiative, slammed the FIRS, saying it planned to scuttle
the activities of the NDDC.

The group in a statement signed by its National Publicity
Secretary, Francis Udoka Ndimkoha, said it appeared there were
undercurrents to ensure that the NDDC was incapacitated to
discharge its statutory duties.

“If it is not the issue of threats from some segments of the
youths, it is that of some stakeholders trying to hoodwink the
populace into swallowing the bait that the commission lacks good
leadership.

“Just coming out from what seemed a furnace of trepidations
occasioned by threats of possible total breakdown of law and order
in the region, the commission is yet again encased in what
observers may describe as a thorny tax issue with the Federal
Inland Revenue Service (FIRS).”

Ndimkoha said the Citizens Quest for Truth Initiative was
shocked to learn that workers at the headquarters were prevented by
FIRS officials from gaining access into their offices.

He said: “It is common knowledge that before business premises
are sealed by tax authorities, proper tax assessments are carried
out after obtaining the financial records of the establishment.

“While no right thinking Nigerian would like to stand in the way
of the FIRS in collecting what is the nation’s rightful taxes, it
stands to reason that the Federal Inland Revenue Service must
operate in line with established procedure. The NDDC has neither
been assessed nor given a demand notice to that effect.

“Accepted, without conceding, that there was an assessment, is
it not shocking that the FIRS, by this action of sealing the
Commission, is pretending not to know the challenges of the
Commission for 20 years which led to the Forensic Audit as ordered
by the President?

“The forensic auditors are expected to not only identify the
reasons for the poor performance of the Commission in 20 years, but
prepare a strategic framework and pathway for a more efficient
running of the Commission.”

“With the Audit winding up expectedly at the end of July 2021,
it smacks of total disregard for the President who is expectant of
the report.

“The FIRS is also not unmindful of the Commission’s huge account
domiciled in the EFCC by oil companies, due mainly to the unbridled
corruption tales that trailed the NDDC before the present
leadership came on board.

“Would it not have made more business sense and save the region
this unwarranted hiccup, to wait for the outcome of the audit
exercise and the recommendations there from?

“After all, the President has said the report will form part of
the terms of reference for the new board in chatting a way forward.
Any action now, therefore, that will disrupt the activities of the
Commission is not in the best interest of the Niger Delta
people.

“We observe the hand of Esau and the voice of Jacob in the
actions of the FIRS. While we support the need for accountability,
we also urge the FIRS to consider the backlash their action may
have on the already fragile tension in the region.

“We advise the management of the FIRS to approach the pending
issues through other means that will avert unnecessary crisis and a
downturn on the economy, should those seeking to frustrate the
Audit and the appointment of a new board decide to leverage on this
avoidable face-off.”

NDDC’s Director, Corporate Affairs, Dr. Ibitoye Abosede, said
the development followed a gap in communication between the NDDC
and the new management of FIRS.

He said: “It is an ongoing thing. In 2018, this same happened.
It is unremitted withholding tax for some years up to 2013. It is
not a recent thing. We have done reconciliation and they came with
that amount.

“In 2018, when they sealed the place, we raised an agreement
with them to seek ways to deduct at source from what the government
is owing us so that we knock it off.

“I remembered that in 2018, we paid N1.5bn, but since that 2018,
we haven’t had a board and it hampered the efforts of deducting it
at source. We don’t have regular subvention from the federal
government.

“Efforts are ongoing to make sure the issues are resolved. We
have a new chairman in FIRS and we are reaching out to him to let
him understand our previous agreement.”

*Advocacy Group Slams Tax Agency

EMPLOYEES of the Niger Delta Development Commission (NDDC) were
stranded yesterday following the sealing of the commission’s
headquarters in Port Harcourt, Rivers State by the Federal Inland
Revenue Service (FIRS).

It was gathered that the action was taken because of the failure
of the NDDC to remit about N26bn arrears of taxes it owed FIRS.

A source from the commission, who spoke in confidence, said the
commission was also owing the Rivers State Revenue Service billions
of naira, adding that the Rivers State Government might come for
their money after the actions of the FIRS.

It was observed yesterday that the main gate to the headquarters
and adjoining walls had over nine stickers with the inscription:
“Sealed by the Federal Inland Revenue Service.”

A resident of the area who identified himself as Peter said the
headquarters was sealed on Thursday.

He said workers, after waiting in vain to gain entry into the
facility, went back home.

He said: “We saw this seal on Thursday morning when the NDDC
workers were coming to work. The situation caused confusion. Many
workers left while some waited around.

“Some workers still came to work today but the gate was still
sealed. To be honest with you, I don’t know why a Federal
Government agency would seal off another federal agency.”

A non-governmental and advocacy organisation, Citizen Quests for
Truth Initiative, slammed the FIRS, saying it planned to scuttle
the activities of the NDDC.

The group in a statement signed by its National Publicity
Secretary, Francis Udoka Ndimkoha, said it appeared there were
undercurrents to ensure that the NDDC was incapacitated to
discharge its statutory duties.

“If it is not the issue of threats from some segments of the
youths, it is that of some stakeholders trying to hoodwink the
populace into swallowing the bait that the commission lacks good
leadership.

“Just coming out from what seemed a furnace of trepidations
occasioned by threats of possible total breakdown of law and order
in the region, the commission is yet again encased in what
observers may describe as a thorny tax issue with the Federal
Inland Revenue Service (FIRS).”

Ndimkoha said the Citizens Quest for Truth Initiative was
shocked to learn that workers at the headquarters were prevented by
FIRS officials from gaining access into their offices.

He said: “It is common knowledge that before business premises
are sealed by tax authorities, proper tax assessments are carried
out after obtaining the financial records of the establishment.

“While no right thinking Nigerian would like to stand in the way
of the FIRS in collecting what is the nation’s rightful taxes, it
stands to reason that the Federal Inland Revenue Service must
operate in line with established procedure. The NDDC has neither
been assessed nor given a demand notice to that effect.

“Accepted, without conceding, that there was an assessment, is
it not shocking that the FIRS, by this action of sealing the
Commission, is pretending not to know the challenges of the
Commission for 20 years which led to the Forensic Audit as ordered
by the President?

“The forensic auditors are expected to not only identify the
reasons for the poor performance of the Commission in 20 years, but
prepare a strategic framework and pathway for a more efficient
running of the Commission.”

“With the Audit winding up expectedly at the end of July 2021,
it smacks of total disregard for the President who is expectant of
the report.

“The FIRS is also not unmindful of the Commission’s huge account
domiciled in the EFCC by oil companies, due mainly to the unbridled
corruption tales that trailed the NDDC before the present
leadership came on board.

“Would it not have made more business sense and save the region
this unwarranted hiccup, to wait for the outcome of the audit
exercise and the recommendations there from?

“After all, the President has said the report will form part of
the terms of reference for the new board in chatting a way forward.
Any action now, therefore, that will disrupt the activities of the
Commission is not in the best interest of the Niger Delta
people.

“We observe the hand of Esau and the voice of Jacob in the
actions of the FIRS. While we support the need for accountability,
we also urge the FIRS to consider the backlash their action may
have on the already fragile tension in the region.

“We advise the management of the FIRS to approach the pending
issues through other means that will avert unnecessary crisis and a
downturn on the economy, should those seeking to frustrate the
Audit and the appointment of a new board decide to leverage on this
avoidable face-off.”

NDDC’s Director, Corporate Affairs, Dr. Ibitoye Abosede, said
the development followed a gap in communication between the NDDC
and the new management of FIRS.

He said: “It is an ongoing thing. In 2018, this same happened.
It is unremitted withholding tax for some years up to 2013. It is
not a recent thing. We have done reconciliation and they came with
that amount.

“In 2018, when they sealed the place, we raised an agreement
with them to seek ways to deduct at source from what the government
is owing us so that we knock it off.

“I remembered that in 2018, we paid N1.5bn, but since that 2018,
we haven’t had a board and it hampered the efforts of deducting it
at source. We don’t have regular subvention from the federal
government.

“Efforts are ongoing to make sure the issues are resolved. We
have a new chairman in FIRS and we are reaching out to him to let
him understand our previous agreement.”