Tax: Osun Govt. Warns Defaulters Against Severe Consequences

By Nofisat Marindoti

The State Government of Osun has urged those who have property and businesses in the State to fulfill their tax obligations in order to avoid running afoul of the state’s tax laws which carry severe consequences.

In a statement issued at the end of the state weekly Executive Council Meeting, signed by the Media Adviser to the Governor, Mr Sola Fasure, the State Government urged those indebted to pay up immediately.

The Council also commended the organisers of the recently held Regional Youth Summit and appreciated the participants.

“Council received the report of the successful hosting of the Regional Youth Summit in Osogbo by the Development Agenda for Western Nigeria (DAWN) Commission and the State Government, between January 9 and 10, which attracted participants from all the states in the region.

“Council commended the organisers of the summit and thanked the participants, particularly the Vice President, Prof Yemi Osinbajo, who delivered the keynote address; Senator Abiola Ajimobi, the Governor of Oyo State; Ondo State Government ably represented by the state’s deputy governor; Ogun State Government that sent a delegation; and the youth organisations and individuals that attended the programme.”

Osun Tax Drive, Full Weight Of Law Await Defaulters, Says Govt

By Nofisat Marindoti

Government of the State of Osun has urged organizations and individuals doing businesses in the state to pay their tax, saying the full weight of law awaits any defaulter.

Directing all tax collecting agencies to use all means necessary to obtain companies cooperation and enforce all relevant laws on taxation, the State Government reiterated that it is determined to collect its revenue to the last kobo.

“Council received report that some professional groups in the state have not been cooperating with the state’s tax administrators. Council condemned this and urged them to begin to cooperate with the tax agencies and obey the state’s tax laws forthwith.”

In a statement issued at the end of the state weekly Executive Meeting and signed by the media adviser to the Governor, Mr Sola Fasure, the State Government also directed that all processes and modalities for offsetting all outstanding allowances of the National Youth Service Corps (NYSC) members, past and present, posted to the state be started immediately.

Lamenting the fact that some residents had continued to dump refuse by road sides, the State Government directed all law enforcement agencies to apprehend anybody caught in the act.

“Council is saddened by reports that some residents have been adamant and have continued to dump refuse on road medians in major cities in the state, in spite of government’s efforts at clearing them timeously. If this is not stopped, it is capable of reversing the gains made by this administration in ridding the state of filth.

“Those who engage in indiscriminate dumping of refuse, wherever catches their fancies, are deliberately jeopardising the health of the rest of the people and making our environment to look ugly. Council consequently directed law enforcement agencies, particularly the Civil Defence Corps, sanitary inspectors and members of community development associations in the state to apprehend these saboteurs and make them to face the full wrath of the law.

“Council was informed and approved of regional youth summit to hold on the 9th and 10th of January. The summit will be the largest gathering of youths in the West. It will also provide the platform for fellowship and expression of diverse opinions and ideas by the youths.

“The Vice President, Prof Yemi Osinbajo, will declare it open. Council urged the youths and the people of the state to participate at the summit and maximally cooperate with the organisers in welcoming and making the delegates comfortable. Council wished the youths a successful parley.”

Osun Seals Dangote Quarry Over N1.5bn Tax Default

The Osun Board of Internal Revenue Service, OIRS Thursday sealed a Dangote Quarry located at Ajebandele, Ayedaade local government area of the state.

The tax enforcement team which was led by the Special Adviser to Governor Rauf Aregbesola on Tax and Revenue Matters, Barr. Gbenga Akano and the officials of Osun Internal Revenue Service arrived at the quarry as early as 6:30am, sealing the entrance to the site.

The Dangote quarry is said to have defaulted in tax to the tune of N1.5bn according to documents seen by this newspaper.
It was gathered that the company has been allegedly evading tax since it started operation on the land many years ago.

Explaining what transpired, Akano said the company was owing about N1.5 billion tax.

According to Akano, several letters have been written to the company but yielded no result.

Meanwhile, some private local security operatives suspected to be members of Oodua People’s Congress (OPC) attacked the tax enforcement team led by Barr. Gbenga Akano. Akano said the team had gone to the quarry but was initially  prevented by the suspected OPC members, numbering about 30 men.

He added that the private security operatives allegedly shot at the officials of the IRS, seized their phones and gadgets and harassed them.

He said the officials phones and gadgets were seized and they were harassed by the OPC. However, a detachment of policemen from the Osun State Command brought everything under control.

LETTER TO THE EDITOR: For Osun Needs To Grow With Tax

I am convinced that in any part of the world where development is seen as nothing but inevitable, the issue of tax or taxation is not something to toy, joke or play with, it is strictly business and when I say Business, it is imperative for development to thrive.

Everyone knows Tax, it is even something you hear and listen to nowadays from a teen age. But one still wonders if the people want to have attitudinal change at all towards this important necessity to make government run and safeguard governance.

For us as individuals, we make sacrifices to survive. Despite this, we crave for good things always even if it is not really needed; we just want to be seen as someone that has a good life.

In the State of Osun where government places premium on the welfare of the citizenry, they also find ways of easing the burden on the people by getting investors to grow the economy of the state by coming in to do business.

In modern entities where businesses thrive without or with small pain, there are things which makes them survive and grow with the economy.

And that’s why the government of Rauf Aregbesola places premium on providing the key infrastructure needed to endear these investments to the state.

Bridges, roads, schools, Ambulance Services for Emergencies, Environment Sanitation Mechanisms among others have been built and still springing up in the nooks and crannies of the state.

These and more are what the state is offering to the citizenry with the allocation patched up by the State’s Internally Generated Revenue as part of it’s duties and responsibilities to the people.

Aside this areas, there is one that is key and that’s security, it’s good to know that in Osun, the nooks and crannies are peaceful to the extent that security agencies maintain the peace with support from the state government in cash and provision of apparatus for them to work.

Undoubtedly, there enormous programmes cannot be sustained without the payment of taxes.

Tax is important in Osun as to every government, the issue of IGR is something that cannot be toyed with.

It is imperative for all in the State of Osun to fulfill their obligation to government by remitting their taxes to its coffers, either by paying through banks or points where the government has designated.

With this, government will be empowered to do more for the people and of course, the people will have course to challenge or call government to question on what their hard earned resources is used for.

Together let’s make Osun Viable through the payment of our taxes.

Osun toti ndara konii B’aje ooooooo

VAIDS: Lagos, Osun, Kaduna, FCT Move Against Tax Defaulters

The governments of Lagos, Osun and Kaduna states as well as the Federal Capital Territory administration have promised the Voluntary Assets and Income Declaration (VAIDS) office in the Federal Ministry of Finance to provide all transaction data required to identify tax defaulters at the expiration of the first phase of the tax amnesty programme in March 2018. This was disclosed in a statement issued by the VAIDS office.

According to the statement, the VAIDS office expects states that provide all the required information to experience sharp rises in their respective Internally Generated Revenue (IGR), as analyses of the obtained data will lead to considerable recovery of otherwise lost revenues.

Earlier this month, the VAIDS office disclosed that it has begun collection of data on the income and assets of high net-worth individuals and companies in Nigeria. Useful data of all payments and receipts over N100million, according to the VAIDS office, have been obtained from the Nigerian Customs Service.

Also, data on all beneficiaries of payments above N100million have been obtained from the Assets Management Corporation of Nigeria (AMCON), Federal Inland Revenue Service (FIRS) and the Nigeria Export-Import Bank, the Corporate Affairs Commission (CAC), Securities and Exchange Commission (SEC) National Identity Management Commission (NIMC) and land registries.  The VAIDS office is equally looking to derive more data from treasury bills, Nigerian Inter-Bank Settlement System (NIBSS), Integrated Payroll and Personnel Information System (IPPIS), Nigerian Civil Aviation Authority (NCAA) and payment platforms such as Remitta.
Source: Vanguard

EDITORIAL: Time To Pay Up

Death and Taxes are the two unavoidables in the span of the human existence. In addition, the bedrock of a democratic setting is that it must be based on a community of tax payers who through the process of meeting up with their tax obligations become stakeholders. Not for nothing, did the revolutionaries in the United States use the slogan, “No taxation, without representation” as the justification for their opposition to British colonial imposition. This explains it all, and it has become the locus on which the modern democratic state exists.

The State of Osun Internal Revenue Service (OIRS) would have been derelict in its duties if it had not sealed off the premises of four leading commercial banks during the week. The agency was spurred into action due to the non-remittance of the withholding tax due to the state government to the tune of N72,932,717.72 between the period of 2012 and 2014.

We support the position taken. The State government of Osun is operating in a tight fiscal climate. The quasi-federalism operated at the moment has not given it the leeway to operate properly as a federating unit should in a federation. Therefore, all revenue sources due to it, must be tapped. The government of the State of Osun has gone-out of its way to create a business-friendly atmosphere in order to attract and retain investments. The government also has an obligation to invest in infrastructures to support and enhance such investments. We are faced here, with the issue of rights and obligations. The fulfillments of tax obligations are very critical in the government’s efforts to meet its commitments to providing the requisite business-friendly environment. Sadly, a lot of other sectors are also in default.

The OIRS has been doing its best. As the Acting Chairman/Chief Executive Officer, Osun Internal Revenue Service, Mr. Bicci Ali has pointed out: “The OIRS has intensified efforts on advocacy, publicity and enlightenment programmes on the statutory obligations of the citizenry to voluntarily comply, by paying their taxes, levies and other charges promptly as prescribed in the constitution of the country and the applicable tax legislations”.

He said, in spite of the efforts, many corporate organisations and individuals still engage in violations of the tax law, saying “under the Tax Act, a taxable person is statutorily required to file a return of income for the preceding year at the expiration of 90 days from the commencement of every year of assessment, a taxable person or corporate organisations who have not filed their tax returns with OIRS by the stipulated date is in breach of the provisions of the law, which is an offence that is punishable under the tax laws”

There can of course be no traders without a market. And a market can only be enhanced as well as deepened by government investments in the necessary social and physical infrastructures. The funds involved are hardly humongous, but they are vitally needed. We therefore urge the affected organisations to speedily pay up and we also urge all citizens to meet up with their tax obligations in order to assist the government in these very difficult times.

Osun: Significant Impacts Of Tax Payment On Paramedics By Wasiu Babalola

As people normally say, “Health is wealth”. The conceptual interpretation of this is that health is core to human survival to the extent that the totality of human existence is being governed by our health status. This means, a complete human being (of physically and mentally balanced) is as a result of the accessibility to good health.

Hearing the good healthcare delivery, what one’s mind would picture is the state of the healthcare structures, medical equipment, personnels as well as availability of drugs in the various hospitals alone, but beyond this, the accessibility to emergency care for patients in need as a result of accidents or any other vital reasons prior to their arrival at a hospital is also core to a good and efficient healthcare delivery.

In the State of Osun, Ogbeni Rauf Aregbesola administration has made a laudable and unprecedented achievement in the paramedical department of healthcare delivery by leaving no stone unturned, as adequate attention is also being given to mobile healthcare delivery system in the state.

Despite the meager revenue accruable from tax in Osun, the value for tax money is still felt in this direction, meaning that it is appropriate to say that it is not about numerical value of money we have that matters but how judicious we are in utilising such funds.

Although nobody prays to be a victim of circumstance, our daily activities propelled by day-to-day technological discoveries expose us to conscious and unconscious risks. This is why it is always wise to have plan for unforeseen contingencies. Going by this direction, Aregbesola administration is scored high. It is only those that have fallen victim of one mishap or the other on the road that can give testimony and commend as deserved on how helpful the mobile healthcare delivery system popularly known as O’ Ambulance had been.

For instance, the statistical analysis released from the State of Osun Ambulance Services (O’ Ambulance) reveals thus: “The Osun State Ambulance Services (O’Ambulance) rescued more than 2,000 people in 2016 through its prompt rescue operations during emergencies across the state.

In an end-of-the-year review of its activities submitted to the Bureau of Communication and Strategy in the Office of the Governor, the Director General of O’Ambulance, Mr. Akinloye, said the state ambulance service responded to more than 1,116 road traffic accident emergencies across the state last year.

Besides, O’Ambulance also responded to 178 cases of collapse, 348 hospital referral and 132 labour emergency cases all of which lives involved were saved, according to Mr. Akinloye.

The D.G stated that of 1,829 casualties involved in all the emergency cases, the agency was able to save 1,774 lives and recorded only 55 deaths arising from the cases.

He also revealed that of the 1,774 casualties saved, 1,116 were males while 658 were females. He added that of the 55 deaths recorded, 27 were males and 28 females

Added to this in the year 2017, over 600 people in the first quarter of this year have been rescued.

From the foregoing, it is very evident that the value of taxpayers’ money is felt in this direction as a result of the proactive measures taken by the incumbent administration to create a unit from the health sector saddled with the responsibility of attending to patients on emergency. If there is no such intervention, there would have been a lot of sad stories to tell.

This implies that the citizenry is always at the receiving end of tax benefits that is, the more they comply with tax payment, the more is the benefit and vice versa.

Therefore, the contribution of every stakeholder matters a lot, as we can together build a better future for our dear state. Pay your tax, it is your civic responsibility.

•Babalola is the Information Officer, OIRS.

Understanding Consumption Tax By Babalola Wasiu

The State Government of Osun is determined to bringing development to the door steps of the people and ensuring that further development is brought to the state through redistribution of wealth.

One of the viable means to achieve this is through funding of the government through tax payment. Under current Nigerian law, taxation is enforced by the three tiers of government, i.e. Federal, State and Local Government, with each having its sphere clearly spelled out in the Taxes and Levies (approved list for Collection) Decree, 1998.

Meanwhile, the concern of this write-up would be on consumption tax being one of the taxes collectible by State Governments of the Federation.

Consumption tax is a type of tax imposed by state Government on the purchase of certain goods and services.

The stance came to being from a ruling by panel of the Supreme Court of Nigeria, led by Justice Suleiman Galadima, which unanimously declared that it was only the state Houses of Assembly that could make laws on tourism, or licensing and grading of hotels and other hospitality establishments, such as restaurants and fast food outlets. In the official gazette issued in.

In the official gazette issued in May, 2015 by Mrs. Ngozi Okonjo- Iweala, formal Minister of Finance, it also shows that the Ministry, in part 2 items 13 granted the state governments the autonomy to collect consumption tax on hotels, restaurants and event centers. This has, however, become effective throughout the Federation as far back as 26th of May, 2015.

Following the presentation of a bill before the State of Osun House of Assembly on issues relating to Consumption Tax, the parliament has passed ‘The State of Osun Hotel and other Tourism Industry Enterprises Licensing authority (establishment) Law, 2015’. In the enactment, the state, through Osun Internal Revenue Service (

In the enactment, the state, through Osun Internal Revenue Service (OIRS) is saddled with the responsibility of collecting Consumption Tax within the categories of the following business organizations: hotels, restaurants and event centers.

To make it vividly understandable, the consumption tax is paid by any person who: (i) pays for the use, possession or for the right to the use or possession of any hotel, hotel facility or event centre; or (ii) purchases consumable goods or services in any restaurant whether located or not located within a hotel in the state.

However, the owners of hotels, event centers, as well as restaurants are just agents of collection and shall collect on behalf of the state, based on the total amount charged or payable by the consumer in accordance with the State of Osun Hotel and other Tourism Industry Enterprises Licencing authority (establishment) Law.

On the other hands, a tax of five per cent (5%) which shall apply to the total cost of facilities, consumable or personal services supplied to a consumer in, by or on behalf of the hotel, restaurant or event centre excluding Value Added Tax(VAT) is paid by any person who: (i) pays for the use, possession or for the right to the use or possession of any hotel, hotel facility or event centre; or (ii) purchases consumable goods or services in any restaurant whether or not located within a hotel in the State of Osun.

The modality for collection is well spelled out in the demand notice made available for the categories of businesses affected within the scope of this type of tax (Consumption Tax).

Consumption tax is one of the viable means of raising money to improve the local community in various ways, such as generating revenue that can be used to finance developmental projects embarked upon by the government.

Osun government is committed to building a more vibrant economy through the boosting of commerce and industry in the state and this will surely impact positively on the welfare of the citizenry.

This can only be achieved when all stakeholders contribute their quotas. We must all key into the development of the state, as we cannot afford to let our state be financially subverted.

Pay your tax; it is your civic responsibility.

•Babalola is the Information Officer, Osun Internal Revenue Service

The Need For TIN, By Wasiu Babalola

 

The yearning and aspiration of tax payers towards the era of positive change that would rescue them from the burden of multiple taxation has eventually come. This is as a result of the introduction of Tax Identification Number (TIN) for all taxable entities being recently initiated by the Joint Tax Board in collaboration with the Federal Inland Revenue Service (FIRS) and the 36 State of Boards of Internal Revenue Service (SBIRS).

One may therefore ask about the Joint Tax Board and more importantly the responsibility it is saddled with.

The Joint Tax Board is a national body created by the defunct income Tax Management Act of 1961, now the personal income Tax Cap P.8, LFN 2004.

It is saddled with the responsibility of issuing and administrating TINs to all taxable entities in Nigeria among other functions.

Meanwhile, Tax Identification Number by its definition is a 10 digit Identification Number that is unique to each identified taxpayer in Nigeria. It was launched by the President of the Federal Republic of Nigeria on Thursday, 5th of April, 2012 at the Council Chambers in Abuja, along with a harmonised National Tax Policy. On the 8th of May, 2014, Tax Identification Number was signed into law by the then Minister of Finance and coordinating Minister of Economy, Dr. Ngozi Okonjo Iweala. The regulation was subsequently gazetted on the 9th of May, 2014, and fully has the backings of the law.

The aim and objective behind this initiative is to create a National platform for the registration and the allocation of a unique identified number to all tax payers to aid effective tax registration and to automate effectively efficient tax processes.

Tax registration activities for all taxable entities are also germane to the TIN initiative and above all, are to abolish tax errors such as double counting or multiple taxation on taxpayers, hence, the essence of sensitisation.

Meanwhile, the State of Osun, under the leadership of Ogbeni Rauf Aregbesola, having fulfilled its own part of the deal by paying the counterpart fund of N86 million, has set a conducive ground for the smooth running of the registration exercise in term of the procurement of all needed equipment with a free of charge registration for the prospective taxpayers.

However, every taxable entity, be it individual or cooperate organisations is therefore urged to bring along any valid means of Identification like Drivers license, International passport, National identification card e.t.c to register and be captured within the tax net.

To register, such taxable individuals and organisations can visit only the designated Tax Identification Number office under the Osun Internal Revenue Service, Finance Building, Secretariat Complex, Abere, Osogbo.

It is paramount to note that social services regulated by the Federal, State and Local government, such as the provision of pension, driver’s license, bank transactions among other have incorporated Tax Identification Number as a pre-requisite for access to such services, which means that it is unavoidably needed for all taxable individuals and organisation as well.

The earlier we register, the better it aids our daily transaction.

  • Babalola is the Information Officer, Osun Internal Revenue Service.

FG to to Give Huge Tax Debtors 3-Year Payment Plan

To encourage more voluntary or accidental tax defaulters to pay up, the Federal Government is to offer tax defaulters with huge (tax) liabilities up to a period of three years to spread their tax payment under the Voluntary Assets and Income Declaration Scheme.

According to a report by The Punch, “Top government officials involved in the implementation of VAIDS confided in our correspondent that those who failed to take advantage of the scheme and later found to have under-declared their income or assets would be treated as wilful tax evaders and made to face the full force of the law.

“The official said apart from prosecution, the government had agreed to allow taxpayers with huge tax debts to enter into arrangements to pay outstanding tax liabilities in instalments.

“However, he said while these categories of tax defaulters might be allowed to settle their tax obligations in instalments, they would be required to pay interest on the outstanding balance.”

“The official said, “Even though ignorance of the law is not an excuse, the government has decided to take the pragmatic approach of offering an amnesty window to allow Nigerians, who may have evaded tax, whether ignorantly or deliberately, the opportunity to do their civic duty and pay the correct taxes whilst providing the much needed revenue for Nigeria’s infrastructure.

“The Federal Government appreciates that many defaulters have assets but may not have cash. Therefore, taxpayers will be allowed to enter into arrangements to pay outstanding tax liabilities in instalments.

“Taxpayers may, at the discretion of the relevant authority, be granted up to three years to pay their liability, but will be obliged to pay interest on the outstanding balance.”

Nigeria Launches Nation-wide Tax Payment Campaign

As the Nigerian government seeks to increase its non oil revenue, the

Federal Inland Revenue Service (FIRS) has launched a nationwide campaign to enlighten and educate the public on the need to pay tax.

The campaign tag tax Thursday sensitization program is aim at implementing the the voluntary assets and income declaration scheme (VAIDS) launch by the present administration and increase the level of payment in nigeria

The campaign team visited market places, departmental shops and super market as well as shopping malls to educate traders and members of the public on payment of tax and its accrued benefits.

Unveiling the campaign in abuja, the executive chairman FIRS Mr. Babatunde Fowler said the need to increase government revenue cannot be over emphazised adding that the campaign would continue every thursday to raise tax awareness and result in massive enrollment of new tax payers.

Tax Thursday’ would continue every Thursday for the next one year, as part of efforts by the federal government to raise the consciousness of Nigerians on tax as a major source of revenue for the country.“The only way we can make Nigeria sweet is to start paying our taxes,”

Mr.fowler said the aim is to encourage nigerians to pay tax as it is being done in other part of the world.

“We have come out with the VAIDs programme, which gives everybody the opportunity to come out and declare their income and pay their contributions to ensure that Nigeria becomes a better place for all.
“I’m sure if we all contribute, Nigeria of our dreams will emerge. It will become a prosperous and conducive country to live in. Let’s join hands together to realize this dream by paying taxes,” Mr. Fowler said.

With the misconception of Nigerians on paying tax, chairman association of Nigerian traders, fct, edozie ogwu said the government a need to collaborate with traders for an effective tax inclusion
”We want to appeal to them to them to collaborate with us in some areas, we are ready to pay our taxes because without taxes, we cannot make the country work. We thank you for giving us the opportunity to regularize our taxes,” Mr. Ugwu said in its quest to achieve a broader tax base, the Nigeria Governments VAIDS programme offers a grace period from july 1, 2017 to march 31, 2018, for tax evaders to voluntarily pay back to government what they owe.

In exchange for full and honest declaration, the government promises to waive penalties that should have been levied and also waive the interest that should have been paid on overdue tax.

Nigeria’s tax compliance rate currently stands at 6%, whilst most developed nations records between 30-32%.

VON