Okomu Oil Palm Company Plc, one of Nigeria’s most profitable companies on the stock exchange is faulting the closure of its office in Benin by the Federal Inland Revenue Service (FIRS) over alleged tax evasion, an action later found to have been executed in error and its offices reopened, even after subjecting the company to embarrassment and panic from stakeholders.
The company which has described the action of FIRS as hurtful to the reputation of its company, according to NAN, further urged the agency to always cross check its records before sealing up business premises for tax evasion.
In the larger picture, the action if unchecked and affects many other businesses, may see the Federal Government’s drive to further improve Nigeria’s ease of doing business at risk of underperforming expected goals if tax officials discharge their duties with prejudice and impede the ability of businesses to thrive.
Earlier this month, the offices of Okomu Oil Palm Plc in Edo State was sealed by officials of the Federal Inland Revenue Service (FIRS), for alleged tax evasion of about N8 billion, but reopened later as the agency’s action turned out to be unfounded.
The company in a statement on Tuesday, quoted Graham Hefer, Okomu’s managing director reiterating that “FIRS illegally sealed its premises located at Okomu Village, near Benin on Wednesday Feb. 14.’’
Fidelis Olise, Communications officer for Okomu, particularly bemoaned the action of a certain Anita Arinne, the FIRS Head of Enforcement Unit, Abuja, who according to him “unilaterally sealed up the company after refusing to speak with the managing director to verify if the company owed tax or not.’’
Olise, however, said that Okomu Oil Company was unsealed after FIRS Benin office confirmed that the company had never defaulted in payment of its taxes to government.
According to Olise, the action has caused the company great embarrassment, as banks, investors and shareholders have been on the phone consistently asking questions on the development.
“The action of FIRS could affect the future income of more than 14,000 Nigerian shareholders, aside from soiling its good reputation with financial institutions,” said Olise.
Olise said although, FIRS had issued a verbal apology for its action, “we demand a written apology from the Chairman of the Board of FIRS, an apology letter from Erinne and a full retraction of the article placed by the Service in the social media to stem the negative impact of their action on the company.
“We feel that this would not be out of place as the company’s name has been smeared.’’
According to Olise, the company will be forced to take legal action to the tune of N5 billion against the FIRS for the damage its action has done to the company’s reputation, and loss of income to shareholders. He, however, expressed optimism that FIRS would do the needful to avoid any legal action against it.
BusinessDay called Anita Arinne, the FIRS Head of Enforcement Unit, Abuja, who reportedly led the exercise, to ascertain the accuracy of the procedure and its alleged flaws, but the calls were not answered.
Okomu Oil Palm Plc has been on what analysts describe as “a continued sales winning streak” as forex restriction on palm oil importation has given it the opportunity to reap the benefits of years of investments in the local economy.
BusinessDay had reported last November that, profit at Okomu, increased by 51.39 percent in the nine month to September as sales jumped 53.14 percent to N6.39 billion, according to results published in October.
Okomu Oil palm Plc in 2017, had its stock having a return of 73.56 percent in one year.
The company’s strides in being profitable even as the economy desperately requires such local development, may however be hurt by unwarranted attacks such as that perceived to have been meted out to it by the FIRS.
