On the orders of the Abia State High Court, Umuahia, the premises of two hospitals based in Umuahia and a hotel based in Aba were have been sealed and their business activities suspended.

The sealed premises were those of Life Essential Hospital and Marantha Hospital both in Umuahia and Lakeshore Hotels and Suite Ltd in Aba.They were said to have failed to remit the sum of N13, 174,663.92, N13, 174,663.93 and N9, 841,914 respectively to the Abia State Revenue Service as PAYEE agents.made the orders in the suits brought against the defendants individually by the state board of internal revenue.Justice Wogu ruled that the trio failed to remit on demand when the said sums of money became due to the State Revenue Service within the time limited by the demand as PAYEE tax Agents.

“And that it has been proved on oath that the PAYEE Tax audit report and demand notice have been duly served on the defendants aforesaid in accordance with the Abia State Board of Internal Revenue Law No 7 of 2008 and the remittance was not made,” the judge held.

About twenty such sealing of premises of banks, factories, commercial houses, hotels, Electricity Distribution Companies, Education and Research Institutions etc had been effected in the past.

Chairman of the state BIR Mr Ugochukwu Ogbonna warned tax defaulters to fulfill their statutory obligations with respect to paying legitimate taxes and levies or risk being prosecuted and having their business premises sealed if the court so orders.

http://www.akelicious.net/2018/08/court-seals-hospitals-hotel-over-tax.html

Nawa o, tax evasion everywhere... but do I blame them?

If business don't pay tax they get closed, if people don't pay tax they get jailed. Then if government don't pay salaries too, same treatment should be given to them. Let defaulting of salary payment be a crime too.

....and they will be the very one to shout government is bad. They want good infrastructure, security, good economy policies, ease of doing business and all... but they won't pay their tax. Government na magician

the rate and number of taxation under this Buhari government is excessive with multiple agencies from the three arms of government taxing businesses without providing anything to the businesses. this is one of the reasons so many businesses are closing down since Buhari took over. this businesses provide their own water, electricity, security even maintain their own roads among other things. yet many agencies tax them. Imagine a single agency taxing a hospital over 13 million naira. and that is just one agency o. they also pay many other multiple taxes.

This is Nigeria, no tax dividends. The money goes to personal pockets. pele :-XThis is Nigeria, no tax dividends. The money goes to personal pockets. pele

Pabloosas:
Nawa o, tax evasion everywhere... but do I blame them?

Please blame them! They can't keep blaming the government for not working while they don't do their own part

Tax money that you guys will waste in frivolities

All those millions?...I'm not supporting tax evaders but this country tax payment doesn't work ..at least a news to show that FIRS is working.. Pls don't quote me ,today is sallah so my ram won't run..

mfm04622:


Please blame them! They can't keep blaming the government for not working while they don't do their own part

Ok. But the government needs to take their duties seriously too if they want people to pay taxes. Imagine paying taxes with nothing to show for it...

I don't know why they like avoiding to pay task.

How can companies owe 9 million Naira PAYE? How many people work there? How much do they earn?

The tax the government collected what are they doing with it? If government failed to protects, provide, pay salaries of workers is not crime then failure to pay tax shouldn't be a crime. Let the office of governors owing salaries also be sealed up.

Now I believe that Nigerian are the real problem of Nigeria, with the few comments above supporting those who evaded the tax, hmmmmmmmmmmmmmmmm! I reserved my comment.

So sad. No accountability. I laugh when I see those silly commercials saying how they use taces to build roads and hospitals etc

yaksdavirus:
If business don't pay tax they get closed, if people don't pay tax they get jailed. Then if government don't pay salaries too, same treatment should be given to them. Let defaulting of salary payment be a crime too.

Is Abia owing salary

400billionman:
Is Abia owing salary

Im not talking of Abia Mr. Man, this is a general post.

Oh

I was personally present at the life essential hospital when the hospital was been sealed by the board of abia state inland revenue.
To be candid with you all ,the tax amount of 13.17million naira for the period of 2010-2015 as stated in their letter ridiculous extortion in my opinion and in reality.
Am very happy that you brought this up because I was gonna bring it up myself when I had time.
With the above breakdown of amount,the tax due for a year is put at approximately 2.2 million per year.(this is so absurd) for an hospital that will barely make up to 6 million naira annually.
Mind you they have other expenses to cater for such as rent,staff salaries,utilities bills like water,power, gen running, other agencies levies and dues.
This life essential hospital is a small hospital with just the main Doctor and 2 intern doctors( I won't wanna mention their names here.
my parent was hospitalized in that hospital for about 2 weeks ,so I personally know what am saying) I was on ground physically all this present.
I even spoke with the tax people on the day they came in the early hours (6.15am ) like they came to bust a criminal den with a lot of policemen ( 2 police vans) and 2 other buses.
Their approach on that fateful day was not ideal telling all the sick people to vacate the hospital,without caring the health conditions of the patients there.

Our government should learn to encourage entrepreneurs and not kill them with unrealistic and unreasonable tax and levies.

Tax evasions in Africa is so vast that tax analysts believes that if the money were paid, most of the continent would be "developed" by now

Genniez:
All those millions?...I'm not supporting tax evaders but this country tax payment doesn't work ..at least a news to show that FIRS is working.. Pls don't quote me ,today is sallah so my ram won't run..

U are very correct,2.2 million for a year for a small hospital that can barely make 5milion annually.
How was the amount calculated is a misery to me.
I spoke with the Doctor and he told me that he didn't refuse paying but how can he pay 2.2 million annually and I totally agree with him.
That amount is ridiculously crazy.

mexxyaaron:
I was personally present at the life essential hospital when the hospital was been sealed by the board of abia state inland revenue.
To be candid with you all ,the tax amount of 13.17million naira for the period of 2010-2015 as stated in their letter ridiculous extortion in my opinion and in reality.
Am very happy that you brought this up because I was gonna bring it up myself when I had time.
With the above breakdown of amount,the tax due for a year is put at approximately 2.2 million per year.(this is so absurd) for an hospital that will barely make up to 6 million naira annually.
Mind you they have other expenses to cater for such as rent,staff salaries,utilities bills like water,power, gen running, other agencies levies and dues.
This life essential hospital is a small hospital with just the main Doctor and 2 intern doctors( I won't wanna mention their names here.
my parent was hospitalized in that hospital for about 2 weeks ,so I personally know what am saying) I was on ground physically all this present.
I even spoke with the tax people on the day they came in the early hours (6.15am ) like they came to bust a criminal den with a lot of policemen ( 2 police vans) and 2 other buses.
Their approach on that fateful day was not ideal telling all the sick people to vacate the hospital,without caring the health conditions of the patients there.

Our government should learn to encourage entrepreneurs and not kill them with unrealistic and unreasonable tax and levies.

The perception of the masses and people in power is that hospitals make loads of money.

Horus:
Tax evasions in Africa is so vast that tax analysts believes that if the money were paid, most of the continent would be "developed" by now

The people are dying you are talking of taxation. Do you realize that there is no accountability? Our tax money is used to fund the lifestyles of politicians, to treat their mothers in US hospitals, to give their girlfriends and concubines 'thanks for f...king me' money, to lunch in 5 star hotels and drink exotic beverages and lastly to bribe fellow politicians.

So screw that. If there is no accountability, there should be no taxation. Simple.

Mgbadike80:
the rate and number of taxation under this Buhari government is excessive with multiple agencies from the three arms of government taxing businesses without providing anything to the businesses. this is one of the reasons so many businesses are closing down since Buhari took over. this businesses provide their own water, electricity, security even maintain their own roads among other things. yet many agencies tax them. Imagine a single agency taxing a hospital over 13 million naira. and that is just one agency o. they also pay many other multiple taxes.

Nigeria needs oil to be at $140 to balance the budget. (That is why even GEJ was taking loans when oil was at $100 per barrel).

So, either we pay high taxes to balance the budget, or we start going without salaries for years.....while we beg IMF up and down for loans.

Oil under Buhari has been below $75 and as low as $30 at one time. Anyone could see that taxes were going to go up.

Pay your tax.

IamaNigerianGuy:


The people are dying you are talking of taxation. Do you realize that there is no accountability? Our tax money is used to fund the lifestyles of politicians, to treat their mothers in US hospitals, to give their girlfriends and concubines 'thanks for f...king me' money, to lunch in 5 star hotels and drink exotic beverages and lastly to bribe fellow politicians.

So screw that. If there is no accountability, there should be no taxation. Simple.

Shey you know that if there is no taxes collected, there is no money for things like salaries, projects, etc.

Shey you also know that anytime we try to prosecute the same corrupt politicians, people like you will come and defend them to the end?

Democracy is hard work

theoldpretender:


Shey you know that if there is no taxes collected, there is no money for things like salaries, projects, etc.

Shey you also know that anytime we try to prosecute the same corrupt politicians, [b]people like you will come and defend them to the end?

[/b]Democracy is hard work

1. My friend, you have zero mevidence that I support corrupt politicians.

2. Condoning the brazen exploitation of the people under the guise of taxation is directly attributable to cowardice.

3. Read my post again and look around your environment, wherever you may reside : does it appear to you that Nigerian government at any level is judiciously employing your hard earned money (appropriated as taxes) for development ?

Anyone saying that Abia state is being hard on its people, does not know what has been happening since 2014

1.Oil prices have been falling since 2014 when it was at $130 in June of that year. By May 2015 it was $75. By January it was $30 per barrel. Now it is $70.

2.As a result, Government at all levels has to resort to a) Borrowing b) Raising taxes c) Plugging leakanges

3.Most of this year's budget was funded by high taxes. Oil is no longer reliable.

IamaNigerianGuy:


1. My friend, you have zero mevidence that I support corrupt politicians.

2. Condoning the brazen exploitation of the people under the guise of taxation is directly attributable to cowardice.

3. Read my post again and look around your environment, wherever you may reside : does it appear to you that Nigerian government at any level is judiciously employing your hard earned money (appropriated as taxes) for development ?

I read your post.

You said that taxes are being used to fund lavish lifestyle of politicians...and you said we should stop paying taxes because of that.

Yes...and in this time when oil is below what we need it to balance our budget.....what does that mean.,?

We take loans...or salaries won't be paid, projects won't be done, bills won't be paid.

Thing is, we are a democracy. That ,means if Mr Politician is chopping your money....VOTE HIM OUT.

its a very wrong perception.hospital business is a very capital intensive venture.most of this money goes back on expenses like diesel,expensive drugs and medical consumables,staff salaries etc.i doubt any private hospital can have up to 20% of revenue left after expenses

IamaNigerianGuy:


The perception of the masses and people in power is that hospitals make loads of money.

All this millions for how many years exactly?

How much payee does Abia state as a whole remit as deductions from it's work force? Given that the state govt. Is the single biggest employer of labour.

How many staff does a hospital have that will warrant such bill from the tax board given that payee is based on how much a person earns.

According to PITA 2011, a person who earns less than 300k a year pays 1% on the gross, which is less than 300 a month.

So how many staff will a private hospital have and what is there taxable income to warrant such humongous tax bill.

I rest my case.

ayoman:
its a very wrong perception.hospital business is a very capital intensive venture.most of this money goes back on expenses like diesel,expensive drugs and medical consumables,staff salaries etc.i doubt any private hospital can have up to 20% of revenue left after expenses

Payee is tax deducted from employee wage based on how much the employee is paid.
This tax is remitted by the employer to the state tax board before the 10th of every month.
So it has nothing to do with the hospitals turnover.