Editorial
Rivers And Tax Evading Firms
The Rivers State Board of Internal Revenue recently sealed up the Head Office of the Union Bank Plc in Port Harcourt to drive home its threat to deal with firms that refuse to meet their tax obligations to Rivers State.
According to the authorities, the bank failed to remit taxes for four years amounting to N1.4bn. They said that the premises would not be open for business until the amount was paid because the bank deliberately ignored repeated warning of the board.
Apparently, this is one of the companies whose unpaid taxes added to the N10 billion the state government said it was being owed in taxes. To make these firms pay up, government had taken several steps including the use of threat to no avail. In fact, it looked like the demand for taxes lacked legitimacy.
That is why the use of force to collect the taxes has become very necessary, commendable and welcome. For too long, the leniency of government has been taken for weakness, a situation that should not be allowed to continue. Indeed, the failure of government agencies to act in the face of violations has created nothing but the culture of impunity.
We are happy that after sealing up the bank at Trans-Amadi, the board has further penciled down a number of other big corporate organisations that are likely to face similar sanction very soon. We are also glad to know that some companies owing huge sums have started paying up on installments.
While we commend the Board of Internal Revenue for steps being taken to recover the debt, the process should be sustained to achieve the desired result. Very often, steps like this are frustrated because officials get compromised in the process.
Besides, it should interest government to know the reason why so many companies in Rivers State would be in arrears of tax remittance. Could it be that they made deals with some officials of the board that did not reflect on government records? Or was it a clear case of lawlessness?
Also important is the reason why the authorities did very little to collect such taxes for as long as four years and more. Apart from the loss in value arising from the delay in payment, such firms would have gone away with such important revenues if they had re-located or closed shop.
That is why the debt drive must be driven to its logical conclusion. But also important is the need to get all the necessary revenue to enable the state government deliver on its promise of providing the kind of infrastructural development that would take the state to the next level.
Considering the massive development the Rt. Hon. Chibuike Rotimi Amaechi administration has embarked on, any attempt to deny the state of its due revenue would amount to a crime against the people of Rivers State.
On the other hand, we cannot understand why banks that declare huge profits at the end of every year would fail to meet their tax obligations to the government. These companies that run after their debtors with knives on one hand and guns on the other should have no reason owing Rivers State.
Rivers State is one place where the government has thoroughly acquitted itself in terms of its responsibility to its people and residents alike. The level of security and social amenities put in place are second to none in Nigeria, to say the least. Also, the idea of involving the private sector in its service delivery strategy should excite firms working in the state.
Because no company will have any reason to evade taxes in the state, we hope that firms, no matter how big, should be made to meet its corporate responsibility to the state and its people. They cannot continue to resist employing Rivers people and denying the people tax. Government must ensure that nobody, including officials of the revenue board, stand in the way to recover all the debts.
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