According to a statement by the Edo State Internal Revenue Service on Friday, the taxes were amounts deducted from the personnel emolument of the firms, which were not remitted to the state government.
The 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.
Okube noted that the service of notice of non-compliance was to serve as a deterrent to other companies and establishments operating in Edo without fulfilling their tax obligations.
According to him, all PAYE taxes were expected to be remitted not later 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, however, urged them to remit all outstanding taxes due to the state government or risk being sealed off.
“Management of both oil firms have seven days to remit all outstanding taxes; failing to do so, the EIRS will initiate legal process for debt recovery,” Okube said.
He also reiterated the commitment of the state government towards the provision of basic infrastructure, through a tax friendly environment which allows business activities to thrive.
The revenue agency had in April 2016 relaxed the presentation of Tax Clearance Certificates as a requirement for the registration of vehicles in the state.
The acting Executive Chairman of EIRS, Mr. Emmanuel Usoh, had explained that the new policy became necessary to shore up the state’s IGR and block financial leakages occasioned by the activities of touts and middle men involved in the issuance of fake vehicle documents.
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