FIRS seals two hotels in Asaba over tax evasion

 

THE Federal Inland Revenue Services (FIRS) has sealed up two hotels in Asaba, Delta State, over their inability to register, pay their tax and comply with modalities guiding tax payment rules.

The hotels are Jina and Sea Park Hotels located along Asaba Onitsha Expressways; the buildings were sealed with the assistance of security men and officers from FIRS.

John Hamman, Tax Controller, FIRS, Asaba, who spoke to journalists after the enforcement, said the service, under the law, has the power to visit, assess the assets of establishments and prosecute those that failed to comply with the rules governing taxation.

He said some of the companies earmarked for enforcement failed to release their documents to the service after writing so many letters to them informing them of the duties of FIRS, stating that the service was surprised that the hotels waited for enforcement.

The tax controller lamented that the service in Asaba has up to 2,000 tax payers while less than 200 companies are filling their annual tax returns, revealing that in September 2014, 93 companies filled their monthly report while in October 2014, it reduced to 86 at the percentage of 55.7 per cent.

Hamman, who revealed that failure to pay tax or raise report is an offence, warned that violators would be made to enter an undertaking in the presence of the police and that if they defy, they would be reported to the head office in Abuja before prosecuting them.

While making them to enter an undertaking for them to operate, he said the service was forced to embark on the enforcement knowing fully that it make them to pay, saying once they comply, the service would delete the names of the companies from the enforcement list.

On why the hotels failed to comply, Alozie Jeff, Manager, Jina Hotel, said the hotel is new and that they have not operated up to one year, while Ifeanyi Ijeh, Director of Sea Park Hotel, said the hotel was leased out for the past three years, lamenting that the new manager has failed to perform such responsibilities.