The Federal Inland Revenue Service has clamped down on some companies in Ondo State for their failure to pay the company income tax and remit the Value Added Tax of their companies to the coffers of the Federal Government.
The offences of the companies include the refusal of the companies to register for VAT, failure to file returns for VAT and the inability to pay companies’ income tax.
Some of the companies are owned by the Ondo State Government, while others are owned by corporate and private individuals in the state.
The Head of Legal Services of FIRS, Southwest geo-political zone, Mr Daniel Onukun, who led a two-day recovery enforcement in the state, said the state government concerns owed the Federal government about N100million.
He noted that about N1million was recovered from some companies who came to pay to avoid being arraigned in the court of law for tax default.
Onukun said In the past few years, the only means of income to the federation account was from oil but the fall in oil price in international market was forcing the government to look inwards in order to raise funds to finance its budget and other commitments.
According to him, some of the management staff of the companies have made commitments to pay their indebtedness in installments, adding that those who refuse to honour the agreement would be prosecuted.
He said, “Henceforth, the Federal Government will unleash its machinery to ensure that all tax invaders are brought to book as government cannot continue to rely on oil as the only means of revenue for the nation.”