Tax evasion: FIRS seals 3 eateries in Owerri

The enforcement team of the Federal Inland Revenue Service (FIRS) has sealed offices of three tax-defaulting business outlets in Imo.

The sealed outfits are eateries – City Chef Restaurant, De Mange Eatery House and Comet Hotels and Conference, all located within the Owerri municipality.

Chinzo Ude, the team leader of the enforcement unit, disclosed this to reporters in Owerri on Tuesday.

He said all due processes laid down by law were exhausted before the affected outlets were sealed.

Ude said none of the affected outfits would be allowed to re-open until they paid tax due to the government.

“FIRS gave them notice of what they owe as tax and they did not respond to our communication and this was followed up with two separate reminders,” he said.

“Thereafter, a demand notice was sent to them and after the expiration of the one month window following the final notice, we were left with no option but to enforce the law.”

He said city Chef tax liability is N2.1 million, Comet Hotel and Conference owes N2.3 million liability, while De Mange Eatery is owing N20 million.

While sealing of Comet Hotel and Conference was going on, the company lawyer rushed to the bank and paid N70, 000, but FIRS noted that the amount was inadequate to unseal the hotel.

“We learnt that Comet just paid N70, 000 out of a tax liability of N2. 3 million and that does not show seriousness,” he said.

“The money they just paid is a penalty for an earlier contravention for late registration and they have paid nothing on the Value Added Tax obligations.”

Ude said FIRS used the visit to serve reminders to Disney Hotels and Oasis Communications, both in Owerri, for not leaving up to their tax responsibilities.