FIRS battles Acorn Petroleum company over unpaid taxes

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FILE PHOTO: FIRS officials at NICON Luxury Hotel Abuja

Akin Kuponiyi

FILE PHOTO: FIRS officials at NICON Luxury Hotel Abuja

The Federal Inland Revenue Service (FIRS) has filed a counter claim before a Federal High Court in Lagos, south west Nigeria challenging the claim of Acorn Petroleum Plc and urging the court to order the petroleum company to pay the sum of N226,561,446.56 being its outstanding tax liabilities and another N10 million as the cost of the counter claim legal action.

The counter claim by the FIRS was as a result of the claim by Acorn Petroleum Company filed before the court, while not denying owing or being in arrears of tax payment, the energy company is urging the court to order FIRS to allow the company to pay its tax liability in installment and in the most convenient manner.

In its claim filed before the court by a Lagos lawyer Eubena Amedu, the company alleged that on 6 March, 2014 it received several demand letters from FIRS relating to re-assessed tax liabilities computed by FIRS in respect to Withholding tax in the sum of N72,214,837.04, Value Added Tax (VAT) in the sum of N65,430,167.66, Company Income Tax in the sum of N92,767,318.03 and Education tax in the sum of N 20,430,466.33.

Thereafter the company paid N20 million and made proposal to pay the balance in installments but FRIS refused, rather the company received a demand letter dated 20th of November, 2015 ordering the company to pay within seven days or face all the sanctions prescribed by the tax laws in Nigeria, including prosecution.

Consequently, the company approach the court, urging it, to restrain the FIRS and its agents from carrying out the threat of enforcement contained in its letter.

However FIRS in its statement of defence filed before the court by Barrister Jerome Okoro averred that Acorn petroleum by its tax defaults incurred …Read More

Source:: PM Newspaper