FCT-IRS seals school, companies over tax evasion

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has sealed a hotel, a school, and three other business premises in Abuja for tax evasion.

Festus Tsavsar, FCT-IRS acting director of legal services, who led the enforcement team on Thursday, said the closure of the premises was in line with a court order obtained by the tax body.

The affected organisations are Deo Gratias International School, Rural and Urban Homes Ltd, Trevari International Company, Phenomenon International Company, and Residency Hotels.

According to Tsavsar, the hotel and business premises contravened the FCT tax laws by refusing to file their annual returns, in spite of issuing several notices — including a court summons.

“Today, we went out to execute the court orders, which ordered the FCT-IRS to seal off the premises of defaulting taxpayers that were brought before it,” he said.

“We have been able to effectively comply with the court order by sealing off the premises as directed.

“We went to Deo Gratias International School located in Games Village, Kaura, and sealed it off.

“The offence they committed was refusal to file their annual returns in spite of many notices, including a court summon but the school management refused to comply.

“We are at their premises and the management refused to attend to us; and refused to open their doors, in spite of many calls for them to do so to enable us to enforce the court order.”

He also raised concerns over the continued refusal by the school’s management to comply with the tax law.

Tsavsar said the action is tax evasion which is a criminal offence.

‘EVASION OF TAX A CRIMINAL OFFENCE’

He said the management changed the name of the school to DGIS College to “evade tax payment”.

“This is also a criminal offence,” he said.

“The school has not been paying their taxes at all and also refused to file their annual returns since establishment.”

Tsavsar said the team also proceeded to Residency Hotels, located in Area II, Garki, which was also sealed for the same offence.

“From there we went to seal off Rural Urban Homes ltd in Utako and two business premises residing in Transcorp Hilton, Abuja, namely Trevari International Company and Phenomenon International Company,” he added.

Tsavsar warned the affected business owners against any attempt to unseal the premises and advised them to obtain a court order before they can do so.

“If they go against the court order and unseal the premises by themselves, they have committed a criminal offence, and the court will order their arrest,” he said. 

“They will be prosecuted in line with the tax law, particularly Section 81 of Personal Income tax law and upon conviction they will be jailed for six months in addition to a fine.”

Tsavsar also warned that the FCT-IRS would go after all tax-defaulting companies and individuals.

He urged taxpayers to comply with existing tax laws, pay their taxes, and file their annual returns.