A Magistrate Court in Wuse Zone 2, Abuja, has ordered the sealing off of a company, Ifedi A.K. Nigeria Ltd, for failing to file its annual returns from 2019 to 2023.
The court's decision was based on an application by the FCT Internal Revenue Service (FCT-IRS), which highlighted the company's breach of Section 81 of the Personal Income Tax Act, LFN, 2004, and its amended version in 2011.
The court, presided over by Magistrate Janada Balami, granted the application by the FCT-IRS, which was represented by lawyer Michael Towolawi.
The FCT-IRS had made efforts to compel the company to comply with the law, but these efforts were met with disregard, leading to the court's intervention.
The court has ordered the company to appear before it on May 16 to explain its actions.
The Director of Legal Services at the FCT-IRS, Festus Tsavar, emphasized the importance of tax compliance in light of the new projects initiated by the FCT Minister, which require significant funding.
Tsavar highlighted that the FCT's recent exit from the Treasury Single Account (TSA) system means that the government's ability to execute these projects depends largely on internally generated revenue.
The court's decision to seal off the company's premises, located at No 6, Rudolph Close, Off Katsina-Ala Street, Maitama, Abuja, sends a strong message to other companies operating in the FCT.
It underscores the government's commitment to ensuring tax compliance and the consequences of failing to comply with tax laws.
This development comes at a time when the FCT-IRS is ramping up efforts to improve revenue generation, with a target of at least N250 billion in 2024.
The agency has introduced several measures, including the deployment of artificial intelligence to facilitate voluntary tax compliance, to achieve this goal.
The enforcement of tax laws and the sealing off of non-compliant companies are crucial steps in ensuring that the FCT generates the necessary revenue to fund essential projects and infrastructure.
It is a clear indication that the government is serious about tax compliance and will not tolerate companies that fail to adhere to the law.
