A Magistrate’s Court in Abuja has ruled in favor of the FCT Internal Revenue Service (FCT-IRS), ordering the closure of a company’s premises due to its failure to submit annual returns. Magistrate Janada Balami granted the FCT-IRS’s application against Ifedi A.K. Nigeria Ltd, authorizing the sealing of their location at No 6 Rudolph Close off Katsina-Ala Street, Maitama, Abuja,Daily Trust reports.
During the proceedings, counsel for the FCT-IRS, Michael Towolawi, informed the court that the company had neglected to file annual returns from 2019 to 2023 despite numerous attempts to compel compliance. This failure violated Section 81 of the Personal Income Tax Act, LFN, 2004, as amended in 2011.
Festus Tsavsav, the Director Legal of the FCT-IRS, stated to journalists afterward that the service would take action against companies failing to fulfill their annual return obligations as mandated by law. He emphasized the significance of generating revenue internally for the projects underway in the FCT, especially since it has transitioned out of TSA, highlighting the crucial role of these funds in ensuring timely completion of government projects.
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The case has been adjourned until May 16 for further proceedings.
