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Court support FIRS to sell companies’ properties towards tax clearance

The Federal Inland Revenue Service (FIRS) has been authorised by an Abuja-based Federal High Court, to sell two landed properties belonging to tax debtors.

The tax debtors are Tradecraft Nigeria Limited and Zaibadari Company Limited. Together, they owe the Government a total of N35.9 million.

About the case

Specifically, Zaibadari Company Limited is owing N18.8 million in tax debts, just as Tradecraft Nigeria Limited is owing N17.1 million. Together, this amounts to N35.9 million.

Bua group

It is, therefore, in a bid to recover this debt, that the Federal Inland Revenue Service sought and obtained the Federal High Court’s approval to sell the company’s properties.

They issued demand notices – The FIRS said it had issued demand notices to the two firms and given them 30 days to pay tax arrears. Both firms failed to comply with the directive.

Both companies did not pay the tax arrears – And despite the Warrants of Distraint that was issued to the two companies, they both failed to pay the tax arrears.

The Court’s response to this – On the 23rd of March 2019, Justice A. I Chikere said the following:

“DESPITE THE SERVICE OF PROCESS ON THE RESPONDENT’S COMPANY, IT REFUSED, NEGLECTED, AND FAILED TO STATE ITS SIDE OF THE CASE NOR HAVE COUNSEL APPEAR ON ITS BEHALF TO STATE ITS CASE. A PARTY WHO HAS OR HAS EVERY OPPORTUNITY TO PRESENT ITS CASE BEFORE THE COURT AND WHO FAILS TO DO SO CANNOT BE HEARD TOO COMPLAIN.

“THE COURT IS BOUND TO BELIEVE THE AFFIDAVIT IN SUPPORT OF APPLICATION TO THE EFFECT THAT THE RESPONDENT IS A TAX EVADER AND IN DEFAULT OF ITS TAX OBLIGATION TO THE APPLICANT.”

Zaibadari’s landed property to be sold – Justice Chikere ordered for the sale of the company’s landed property located at plot 551, Wuye B03 FCT, Abuja. This will help cover up for its N18.8 million tax debt.

Tradecraft’s landed property to be sold – Justice Chikere also ordered for the sale of its property at Plot 1151 Wuye B03 FCT, Abuja, to cover up its N17.1 million tax debt.

Credit: Nairametrics

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