Solomon Ighrakpata, Chairman of the Delta State Internal Revenue Service (DSIRS), has expressed delight over the court ruling, ordering Nigitrade International Company to remit the sum of N1,433,309,286.88 to the State Revenue Service, being unpaid taxes due to the service for the period of 2015 to 2020.
Justice Champion Umukoro of Delta Revenue Court sitting in Warri, had ruled in favour of the DSBIRS while delivering judgment on the case of tax evasion the Service levelled on the company, a labour providing firm to Chevron Nigeria Limited in the EGTL Project at Escravos, in Suit No: RCW 01/ 23.
According to Justice Umukoro, “Prior to the institution of the case in the court, the Defendant was served several notices for payment of their staff’s Personal Income Taxes amidst other taxes which they neglected, failed and refused to remit to the Service.”
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Justice Umukoro stressed that Nigitrade International Company, by their deviance to the subpoena, ran foul of sections 54, 57, 59 and 78 of PITA and 44 ( 1) of the Delta State Internal Revenue Service Law.
He reiterated that the defendant went on to file a preliminary objection where they stated that being a contractor to Chevron Nigeria Limited and that their taxes ought to have been paid by Chevron.
Responding to this objection, Counsel to the Service stated that Chevron Nigeria Limited confirmed the defendant to being their contractor, but that Chevron has no responsibility over the internal affairs, staffing, remuneration and taxes of the defendant’s staff.
Consequent upon the submissions, Justice Umukoro had the preliminary objection filed by the defendant struck out, thereby upholding the allegation of tax evasion against them. He, therefore, pronounced judgment against the company in favour of the DSBIRS.
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Ighrakpata, the DSIRS boss, in his reaction, expressed delight at the judgment. He described the verdict as a landmark ruling, noting that it would act as a deterrent to other erring organisations.
He assured that the recovered funds would be channelled towards critical infrastructural projects in the State.
While reiterating the Service’s commitment to curbing tax evasion across the State, he advised corporate entities and individuals to regularise their tax obligations voluntarily to avoid the severe penalties, enforced recovery actions, and possible prosecution that accompany default.
