Published On: Thu, Sep 12th, 2013

Alleged Tax Invasion: FIRS Denies THISDAY Remittance of Taxes of Former Editor

Publisher of THISDAY Newspaper, Nduka Obaigbene


LAGOS SEPTEMBER 12TH (URHOBOTODAY)-The Federal Inland Revenue Services (FIRS) Monday confirmed that purported tax remittances by Thisday newspapers, on behalf of a former editor,, Mr. Paul Ibe, are not on its database.
The revelation was made at the continued trial in the matter brought by Mr. Ibe against Leaders & Company Limited (publishers of THISDAY), and its Chairman/CEO, Mr. Nduka Obaigbena. The venue was National Industrial Court, Abuja.
Mr. Ibe, a former Editor of THISDAY on Saturday and Editor Nation’s Capital had in July 2011 dragged Obaigbena and his company to court over alleged non remittances of his pension and taxes (PAYE) to the relevant agencies.
Ibe had also asked the court, presided over by Hon. Justice M. N. Esowe to declare that the procedure adopted by the defendant that led to the termination of his employment on July 13, 2010 was unlawful, illegal and in bad faith.
Mr. Garba Gusau, Manager, Tax Operations Group told the court that a search of FIRS database on tax remittances of Mr. Ibe drew a blank.
Led in evidence by Barrister Noble Ifeme, Gusau, who said his work includes among others monitoring of tax offices in relation to collection of taxes, confirmed that he authored the letter from FIRS with respect to Mr. Ibe’s tax, which had already been admitted in evidence by the court.
He said the letter dated 5th July, 2011 and titled “Re: Request for confirmation of tax remittance and TIN number” followed a letter from dated 6th June 2011 seeking confirmation of the remittances and TIN number of Mr. Ibe during his more than 12 years employment with the newspaper.
Garba confirmed that as at the time he authored the letter “there was no record of remittance” with respect to his client (Ibe) whom he wrote on his behalf.
“As at the time the inquiry was made, we (FIRS) searched through our records and there was no remittance with respect to Mr. Paul Ibe. All remittances are reflected in our system,” the FIRS official said.
Under cross examination by Samuel Zibiri, the FIRS official acknowledged that under the PAYE (pay as you earn) regime) employers were expected to remit the tax of their staff.
Confronted with documents to back claims that Thisday was a tax paying organisation, the FIRS official said that he was in no position to confirm the authenticity of the documents because they were not certified.
Zibiri thereafter sought an adjournment to enable him have the documents, which he said was important to his case verified by the appropriate department of FIRS.
The court adjourned till October 19, 2013 for the conclusion of the cross examination of Garba.
In July, Ibe had informed the court that the out-of-court settlement at the instance of Obaigbena/Leaders & Co Ltd did not yield the desired results.
Source: Pointblanknews.com

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