Tax law: Court orders seal of company’s premises over breach

A Magistrate’s Court in Abuja has ordered the FCT Internal Revenue Service (FCT-IRS) to seal the premises of a company over non-filing of annual returns.

Magistrate Janada Balami on Friday said the application by FCT-IRS against Ifedi A.K. Nigeria Ltd had merit and granted same to seal the No 6 Rudolph Close off Katsina-Ala Street, Maitama, Abuja.

Earlier, counsel to the FCT-IRS, Michael Towolawi told the court that the company had failed to file its annual returns from 2019 to 2023 while all efforts to compel their attendance proved abortive, which breached Section 81 of the Personal Income Tax Act, LFN, 2004 amended in 2011.

The Director Legal of the FCT-IRS, Festus Tsavsav told journalists after the proceeding that said the service would move against companies that do not file their annual returns as provided by law.

He said, “You know that we have a new minister in FCT, that is doing a lot of projects and that hinges on money and of course you are aware that FCT has come out of TSA so it is the internally generated revenue that will make the government of FCT to be able to do those projects completely within required time.”

The matter has been adjourned to May 16 for hearing.