In its bid to ensure business owners remit the Value Added Tax (VAT) and file in their returns, the Yenagoa Tax office of Federal Inland Revenue Service (FIRS) has raided and sealed about 30 business outfits in the Bayelsa state capital.
Speaking on the four – day enforcement raid Patrick Iroro, Tax Controller, Yenagoa Tax office of Federal Inland Revenue Service (FIRS) said it was unfortunate that such raid had to be carried out before the business owners did the right thing.
Iroro said tax defaulters at the end of the raid paid N 2 million arrears into federal government coffers.
He said most of them had made promises and even signed undertakings to pay in three installments.
“As a result of this, by April, we expect that about N9 million arrears would have been paid to us by defaulters.
“This amount is different from the monthly remittance they must send to our office.
The tax controller wondered why business operators were not willing to remit VAT saying such remittance did not affect their profit at all.
“The five percent VAT charges is charged by business outfits on behalf of government so why are they reluctant to remit the money to government at the end of the day?” he said.
Iroro told reporters that the enforcement raid could be described as successful as most of the defaulters had promised to pay up.
“A total of 30 premises were raided with 20 hotels among them.
“After we sealed four of the biggest hotels in town and about ten other business premises, the other debtors started rushing to beg and promise to pay” he said.
Iroro said business owners in the area had a lackadaisical attitude towards paying government taxes because they believed anything government should be free.
“The compliance level here is very low. We have enlightened them through the mass media, written letters and even hosted them at our office for them to cooperate, yet they never complied. However since the exercise, things have started looking up for FIRS as more and more are coming forward to pay with others signing undertakings on payment,” he said.
According to Iroro, the exercise which lasted from January 21 to January 24 would be a continuous one as another phase would be carried out after the latest one was reviewed.
“We decided to embark on the enforcement exercise because we realise that so many tax payers in town are not responding to our letters urging them to register and pay their taxes,” he said.
Iroro however disclosed that the premises of defaulters who paid and those who signed agreements to pay in installments had been re – opened.
The tax controller appealed to business owners to remit VAT and file annual returns with FIRS so as to enable government provide Nigerians with basic amenities and infrastructure for better living.
Iroro said it was when the people paid their taxes that they would have the courage to challenge government if it was not living up to its responsibilities.
On revenue target, he said “we could only meet 53 per cent of target last year,”
