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Tax Evasion: FCT-IRS Clamps Down on non -Compliance Businesses

By Joyce Remi-Babayeju

The Federal Capital Territory Internal Revenue Service ,FCT-IRS, has clamped down on two businesses premises over failure to file tax returns and non-settlement of outstanding liabilities regardless of multiple notifications.

The FCT-IRS Acting Director, Legal Services. and Head of Enforcement Team. Barr. Festus Tsavsar, while speaking to journalists during the exercise said that the operation carried out is part of the agency’s drive to ensure tax compliance to boost internally generated revenue for the FCT Administration.

Tsavar, stated that the affected businesses Phase 3 Telecom and Cilantro Village both in Maitama repeatedly ignored demand notices, invitations for dialogue, and reminders from the FCT-IRS in the last three years.

These taxpayers have deliberately refused to meet their tax obligations despite several opportunities given to them. We obtained court orders to seal their premises, and this action will remain in place until they settle their outstanding liabilities, Tsavsar said.

Furthermore, he warned, that business owners are legally prohibited from unsealing their premises without going through the proper legal channels.

“By law, no one is allowed to unseal their premises without clearance from the FCT-IRS. If they attempt to do so, they will be committing an offense. The only way forward is for them to pay their tax debts, after which we will approach the court to lift the enforcement order.”

One of the affected businesses, Phase 3 Telecom, reportedly owes millions of naira in unpaid taxes spanning over three years, he disclosed.

“We have written multiple demand notices to them for over three years, but they refused to respond. Even after attending meetings and making commitments to pay, they still failed to comply.”

Cilantro was penalized for failing to file its annual tax returns for more than three years, leading to the court-ordered enforcement action.

Barr. Tsavsar noted that this is just the beginning of the enforcement operation, stating that the team will continue sealing more premises in the coming weeks.

“We want all tax defaulters in Abuja to know that we are coming after them, one by one. If you are a taxpayer in the FCT, it is in your best interest to comply with tax laws by filing your returns and paying your dues on time”, he warned.

While corporate tax filings were due by January 31, individual taxpayers have until March 31 to comply before similar enforcement actions are taken against them.

The agency urged businesses and residents to take advantage of the remaining days to fulfill their tax obligations, warning that failure to comply result in closure of their businesses.

“Tax compliance is not optional; it is a civic duty. The revenue generated is essential for the development of the FCT, including infrastructure, healthcare, and other public services. We advise all taxpayers to do the right thing before enforcement measures reach them advised.

With the ongoing FCT-IRS enforcement actions
, taxpayers are urged to settle their dues promptly to avoid disruptions of their business operations.
End

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