Chinese firm sealed off over alleged N109.5m tax default

By Samuel Oyadongha

YENAGOA—THE Bayelsa State Board of Internal Revenue,  has sealed off a Chinese company, Hilong Oil Services and Engineering Company Limited, over alleged tax default of N109.5 million.

The company, which carries out services for oil companies, is allegedly owing the state government for five years.

The enforcement team, accompanied by armed security operatives, drawn from the Nigeria Police and Nigerian Security and Civil Defence Corps, stormed the premises of HOSEC located at Elebele in Ogbia Local Government Area of the state, about 9a.m., and sealed off the company.

The team was however at first not immediately allowed access into the premises by soldiers guarding the company until an unnamed official of the company came and after some disagreement, allowed them to carry out their operation.

Director of Compliance, BIR, Mr. Robert Lokoson, who spoke with newsmen after the operation, said the team was at HOSEC to recover a tax debt of N109.5m owed the state government by the company since 2013.

He said that the operation was pursuant to Section 104 of Personal Income Tax (Amendment) 2011 and an ex-parte order granted by a Bayelsa State High Court sitting in Sagbama.

His words, ‘’This operation is part of Bayelsa State Government’s efforts in improving Internally Generated Revenue in the state and pursuant to Section 104 of Personal Income Tax 2011.

‘’The board had obtained the necessary court orders, pasted the Warrant of restrain on the property of HOSEC for a tax debt of N109.5 million owed the Bayelsa State Government.‘’

 

The debt has been on since 2013 and we had written a series of letter to them to pay but no response from them.   A few weeks back, we came here, though not with court orders, with the intention of having them to see reasons to comply, but no response. So, we had to take this last resort of getting court orders.

‘’Tax matter has laws are binding and as a law-abiding board, we have gone through the necessary processes in carrying out the sealing.’’

He added that after 14 days, if no response came from the company, the board would go back to court and institute a case against them.

Lokoson said that the sealing of the company was to show the seriousness of the state government in recovering the money, noting that the government needed money in financing its projects.

 

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