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NEITI to refer defaulters of Profit Tax to anti-corruption agencies

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NEITI to refer defaulters of Profit Tax to anti-corruption agencies

By Matthew Eloyi

The Nigeria Extractive Industries Transparency Initiative (NEITI) has said it will report oil and gas companies that have defaulted in remittance of various profit taxes to the federation account.

The Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji disclosed this while briefing newsmen on the 2019 oil and gas industry audit report and Solid Mineral Industry audit report in Abuja, on Tuesday.

According to Orji, 77 oil and gas companies operating in Nigeria are currently owing the country 6.48 billion dollars, an equivalent of N2.659 trillion.

He said the debts, which were identified in the Report, arose from failure of the companies to remit petroleum profit tax, company income tax, education tax, value added tax, withholding tax, royalty and concession on rentals to the Federation Account.

The Executive Secretary explained that a total of 143.99 million dollars is owed as petroleum profit taxes; 1.089 billion dollars as company income taxes and 201.69 million dollars as education tax.

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Others, he added included 18.46 million dollars and 972,000 pounds as Value Added Tax; 23.91 million dollars and 997,000 pounds as Withholding Tax; 4.357 billion dollars as royalty oil and 292.44 million dollars as royalty gas.

Also, 270.187 million and 41.86 million dollars were unremitted gas flare penalties and concession rentals respectively.

Orji noted that the disclosure was important and timely in view of government’s current search for revenues to address citizens’ demand for steady power, access to good roads, quality education, fight insurgency and creation of job opportunities for the country’s teeming youths.

He added that NEITI was determined to help the Federal Government recover the money from the 77 companies, and advised the affected companies to ensure they remit the various outstanding sums against them before the conclusion of the 2020 NEITI audit cycle to the relevant government agencies responsible for collection and remittances of such revenue.

He also warned that NEITI would no longer watch while these debts continue to remain in its reports unaddressed, stating that it would provide all necessary information and data to sister agencies saddled with the responsibilities of recovering the debts into government coffers.

He said that the agency would also share the information and data with partner anti-corruption agencies with whom it had signed memoranda of understanding (MoU).

NEITI to refer defaulters of Profit Tax to anti-corruption agencies

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