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B N W: Biafra Nigeria World News |
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MTN has never paid tax to FG � OmoiguiPAUL MUMEH,RICHARD IHEDIWA
MEMBERS of the Senate Committee on Public Accounts were stunned on Tuesday following a shocking revelation that global system of communication (GSM) giant, MTN Ltd, has not remitted any amount as tax to the Federal Government since it started operation in the country in 2001. Chairman of the Federal Inland Revenue Service (FIRS), Ms Ifueko Omoigui, who made this known to the committee, said MTN which recently declared a profit of N12 billion had never paid tax as it was curiously exempted from taxation by an unnamed of government authority. She said MTN which had over two million subscribers and a large spread across the country, was exempted from taxation for a period of five years on grounds that it was "a pioneer company." Irked by the revelation, the committee headed by Senator Mamman Ali instructed the FIRS to immediately reverse the exemption and also clamp down on all other tax defaulting companies whether quoted or not at the Corporate Affairs Commission (CAC). "Why must MTN be exempted it is clear that it is not qualified for exemption. Tax exemption is meant only for companies that are venturing into uncertain area and that is not the case with MTN. The telecomms sector have been a booming terrain in the country from the on set so that exemption must be reversed immediately" Ali insisted. Describing the trend as a rip off on Nigerians, the Senate Committee mandated the FIRS to investigate and document the "unacceptable" exemption adding that there was no legislation backing the unauthorised privilege. Lamenting that the nation was losing huge sums of money through tax evasion the senate committee said that the National Assembly would strengthen tax laws in the country with stringent punishment for defaulters. The committee insisted that unquoted companies must also be documented and taxed appropriately as, it was evident that most of them were making huge profit in the market. However, stating the resolve of FIRS to clamp down on all defaulter as well as to plug all avenues of leakages in the system, FIRS boss Omoigui pleaded with the senate to back the establishment with relevant laws and adequate funding. Omoigui revealed that it is presently estimated that Federal Government Agencies including and NITEL are owing over N14 billion as tax. According to her while state government is owing an actual tax figure of N4.16 billion local councils are owing arrears of over N2.3 billion. Some unresolved cases over tax default she said include those of peak Merchant Bank pegged at N1 billion. Hallibuton $2.4 million and the Niger Delta Development Commission (NDDC) N300 million. Stating that inland revenue accounted for over 28 per cent of the nation�s total revenue, Omoigui said that with necessary support from the Government the establishment would triple its takings by 2007. She however requested that the FIRS be exempted from the monetisation policy as it affected operational vehicles as they would be needed to enhance the effectiveness of the establishment. The FIRS boss assured that the establishment would be transparent and accountable in its operations.
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