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Edo board sues FG’s agencies for tax default

By Simon Ebegdulem
BENIN CITY—THE Edo Board of Internal Revenue has filed five separate law suits against four Federal Government establishments and Micro Finance Bank operating in the state for alleged violation of the Personal Income Tax, PITA, 2004 Act, as it relates to the deduction and remittance of Pay As You Earn, PAYE.

The organisations are the Psychiatric Hospital, Uselu, Rubber Research Institute of Nigeria, Iyanomo, National Board for Technical Education, NABTEB, Irrua Specialist Hospital and Cutting Edge Micro Finance Bank.

The organisations were charged alongside their Pricipal Officers for alleged violation of the Personal Income Tax 2004 law, by refusing to deduct and remit the appropriate PAYE.

Speaking to newsmen weekend on the issue, the Executive Chairman of the Board, Dr Ese Owie , said  that the Board remains resolute in its determination to ensure that all organisations in the state complies to the fullest with the PITA.

He called on Federal Government agencies in the state to comply with the law by remitting PAYE as arrangements had been concluded by the Board to prosecute defaulting organisations.

“We had decided to take these people to court to serve as a deterrent to others who are yet to comply with the law. Non payment of PAYE is a criminal offence and these companies have not complied in the last six years. Most of them apply arbitrarily rates that are lower than what they should ordinarily pay. Some of them failed to deduct the right taxes, while some of them, what ever they deduct, they still do not  remit to us,” he said.

Dr Owie added that “the Governor had made it clear on several occasions that the PAYE law must be followed because it is a federal law. And let me say this, we will be prosecuting over 100 of these establishments in the next one week. If you are not ready to pay, then you should stop engaging in any business in the state.”


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