
The Enugu State Government on Friday December 1, 2023, sealed up 13 hotels and one private school for non-compliance with their tax obligations and liabilities.
The hotels sealed include Top 10 Hotel, The Gate Luxury Apartment, Pentagon, Ekulu Green Guest House, Bontera Suite, Richmond Hill Suite and Maybach Hotel.
Others are ; La Virgin Suites & Residence, Stellacynthia Hotel & Suite, Octopus Hotel Ltd, D-Kings Planet, Mary Suite, Torrequebrada hotel and Kesandra Hotel as well as a private school Divine Comprehensive Secondary School.
The action followed an order by the high court of Enugu State issued on Wednesday November 29 2023 by His Lordships Honourable Justice K. I Okpe-Judge.
The Enugu State Government, through Enugu State Internal Revenue Service approached the Court seeking an Order distraining the Respondent for failure to pay their staff PAYE tax, Development levy and Companies Withholding tax due to the state government for the period of 2015 to 2020 for some and 2018 to 2021 for others.
The Enugu Internal Revenue Service also request an Order authorizing it to recover the tax due from sealing the premises of the Respondent and sale of such goods distrained upon failure of the Respondent to pay the tax due and its costs and charges, incidental to the distress which was granted by court.
It was on this strength that the enforcement team of the revenue agency stormed the various defaulting hotels and school at early hours of Friday to seal them for tax evasion.
Addressing Journalists shortly after the exercise, Chairman of the Enugu State Internal Revenue Service, Ekene Nnamani said after a tax audit it was discovered that several institutions have not been meeting their tax obligations for the past seven years.
Mr Nnamani disclosed demand notices, warning letters as well as intention to sue have been served on the defaulting organisations but they failed to comply.
He said government will immediately unsealed their businesses after they show commitment of their readiness to meet their tax obligations and obey relevant tax laws of the state.
He noted that government cannot carry out any development project if citizens and businesses do not pay their taxes adding that sealing of business premises is part of measures to ensure compliance.
“We started our enforcement on tax payment and tax compliance this morning because several institutions in the state do not pay their tax as it’s supposed to be”.
“We did what we call tax audit on these institutions. We serve them demand notice. We serve them warning letter. We even serve them intention to sue them to court and when those things failed, we instituted a case against them in our courts, and after court have head our applications, they rejected some asking us to go and do more work on them, and then granted us an order for 16 corporate entities who have failed to comply with the tax laws”.. “And today, we started enforcement to seal those companies and demand immediate compliance to our tax liability.
“You know that sometimes people believe they cannot take the tax authorities serious. They believe sometimes they can get their way out. But this time around we are very much committed. We are proactive and we are diligent in what we are doing”.
“So this is not time for us to begin to say I know this person, I don’t know this person. Let them go and pay their tax and that is what we are doing currently. So our intention is not actually to destroy businesses, but to announce to the whole people of Enugu that we are not joking with our taxes. Pay your taxes”.
“For the companies we seal today. We are ready to unseal them immediately, if they commit to the tax liability and the payment of these tax liabilities. We don’t have any intention to disrupt their businesses because businesses is our life. Without businesses, the state cannot grow. But we just need to do that to send a signal. What we are doing currently is, bridging the knowledge gap, because some of these entities are unable sic…
“You know and Igbo man believes that when he has money, he has every knowledge. But a lot of events have proven that those who have the money do not have every knowledge. “So when you have a business, you should have professionals who run your business, who advise you the right way. Sometimes they don’t actually pay this tax. Simply because they have a knowledge gap.
“So, we’ll be bridging the knowledge gap from time to time. We’ll be also be engaging stakeholders in different industries in the state, having a town hall meeting with them, ensuring that if you fail to pay your tax, it is because deliberately you fail to pay not because you don’t know what to do. Where you think you don’t have the professionals that will help you compute your tax, we have people here in the board. We can dedicate one or two persons to support you, free of charge to ensure that you pay the right tax”.
Nnamani said sealing of business premises is the standard practice globally.
“ If you fail to seal companies, nobody will take you serious. Even in Lagos. last two weeks, Lagos sealed over 100 Companies in Lagos and they continue to seal on daily basis. It has not allowed businesses to leave Lagos. In Port Harcourt, the same thing. Enugu is also a big city. It will not affect our business but we don’t have intention to continue to disrupt their businesses.
“We are only calling their attention to come and comply with our tax laws. That is it. If they comply now we are unsealing it immediately. So that their business will continue to run uninterrupted.