The Federal Inland Revenue Service (FIRS), has taken the
Midwestern Oil and Gas Company Limited to a Federal High Court,
Lagos over failure to pay the outstanding tax liability due to the
Federal government in the sum of $97,086,985.
In an affidavit sworn to by a legal practitioner from the law
firm of DAC legal practitioners, Mr Ayodeji Jolaoso, and filed
before the court by Dapo Akinosun, the deponent averred that, as
normal obligatory routine, Mid Midwestern Oil and Gas company filed
its self-assessment notice for the year 2012-2013 which was
delivered to the plaintiffs showing that it made a profit of
$271,857,000 and $173,613,950 in the two years.
But FIRS verified the claim by the company in its
self-assessment and discovered that the defendant did not pay any
amount as its petroleum tax and Educational tax for the year 2012
and 2013 respectively.
FIRS thereafter assessed the company based on its declared
profit for the year 2012 and 2013, issued and served a notice of
assessment dated January 29, 2015 and demanded notice 11th April,
2018, indicating the outstanding tax liability of the company
covering Petroleum tax
and educational tax.
The break down of the outstanding tax liability of the company
are as follows: Petroleum profit tax liability for the year 2012 is
$65,065,644.00; petroleum profit tax liability for year 2013 is
$28,024,364; Education tax liability for the year 2012 is
$2,436,340 and Education tax liability for year 2013 is
$1,565,638.00.
The total amount of the outstanding tax liability of the company
due to the Federal Government from the taxes stated above is
$97.086,985.00.The company did not raise any formal objection to
the assessment and has since refused to pay the outstanding
debt.The plaintiff instructed its solicitor who wrote a letter
further reminding the company of the demand for remittance of the
outstanding
tax liability.
In an attempt to settle this matter amicably, the plaintiff’s
solicitor also invited the defendant to a meeting to discuss the
payment of the outstanding tax liabilities highlighted above and
other issues arising therefrom by a letter September 19 ,2018.The
defendant has refused and neglected to pay its outstanding tax
liabilities as assessed by the plaintiff despite all attempts made
by the FIRS to ensure the remittance of the company’s Petroleum
Profit Tax and Education Tax for the years for the years 2012 and
2013.
Consequently, the FIRS, is urging the court to direct Midwestern
Oil to pay its outstanding tax liability arising from the Petroleum
profit tax and Education tax assessed in the sum of
$97,086,985.00.
FIRS is also praying the court to direct the company to pay a
penalty of N10,000.00 daily as consequence of late payment of the
tax due from 1st February, 2015 till the date its tax liabilities
are remitted as prescribed by section 51(1) of the Petroleum Profit
Tax Act (PPTA) cap P13,Law of the Federation 2004 and Education Tax
Act. CapE4, Law of the Federation of Nigeria 2004. Midwestern Oil
and Gas Company has not filed any defence.
Meanwhile the case has been adjourned till after court vacation
for hearing.