The Nigerian Revenue Service has warned that companies found guilty of tax evasion risk severe sanctions, including fines, freezing of bank accounts, imprisonment and possible loss of business premises.
The warning was issued by the NRS Tax Controller, Emerging Tax Office, Aba, Mr. Nicholas Okolo, during a seminar on tax reforms organised by the Abia Shippers Association.
Okolo disclosed that no fewer than 318 companies in Abia State had been identified for tax-related defaults, warning business owners to regularise their tax records in order to avoid enforcement action.
According to him, the sanctions available under the tax law range from monetary penalties to placing liens on the bank accounts of defaulting businesses, imprisonment and loss of business premises.
“The punishments available for infringing on the tax law range from fines to placing a lien on bank accounts of defaulting businesses, imprisonment and loss of business premises,” he said.
He advised shippers and other business owners to register with the tax office, obtain Tax Identification Numbers, file their returns promptly and pay all due taxes to avoid penalties.
The seminar focused on the Nigerian tax policy reforms and their implications for members of the Abia Shippers Association.
Speaking at the event, the Chairman of the Board of Trustees of the association, Mr. Olo Onuma, said the programme was organised to expose members to the demands and implications of the new tax regime.
Onuma said many business owners had previously paid little attention to tax compliance beyond registering their companies, but added that the new reforms made it necessary for traders and shippers to understand their obligations.
“Before this time, we have never had any reason whatsoever to worry, but because of this new tax law, Abia Shippers Association thought it wise to hold this seminar so that members and the public would know the implications of these new laws,” he said.
“It is not enough to say you registered your company but you don’t know what to do. If you listened to these lectures, you will see that they are eye-opening.
“So whoever has participated in this seminar would go home prepared to run his company to reflect the knowledge that he or she has garnered from here.”
Onuma, who said he had been involved in foreign trade since 1980, noted that the association had in the past influenced changes in unfavourable government policies and would make representations on the new tax regime if necessary.
The acting President of the association, Mr. Emmanuel Ubadire, said the seminar was meant to educate members on how to manage their finances, businesses and taxes under the new reforms.
He said many traders were still unclear about the full implications of the new tax policy and urged government to ensure that tax measures support business growth.
“The new tax policy reform is not yet clear to us. When one is receiving money from any customer, let them be aware of the new policy,” he said.
“We will not dictate to the government on how to tax Nigerians, but we are pleading that policies should enable us to progress.”
Also speaking, the Assistant General Secretary of the association, Mr. Emenike Ubani, said members were uncomfortable with the new tax regime and decided to educate themselves to avoid falling foul of the law.
“Nigerians are paying through their noses and we are not seeing any result. They removed fuel subsidy, and now they have added tax. We decided to educate ourselves on how to tread softly with the law,” he said.
Ubani added that the association would still make formal proposals to the government through its national leadership in order to reach a better understanding on the implementation of the new tax regime.
A lecturer in Ports Management Planning and Ship Chartering Practice at Ogbonnaya Onu Polytechnic, Dr. Lucky Ainabor, said the seminar would help business owners better understand how to relate with government and comply with public policies affecting their operations.
The event ended with a call on shippers, traders and business owners to take tax compliance seriously, especially as the revenue authorities intensify enforcement under the new tax reforms.
