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Osun, Delta Fine Google, Meta For Tax Evasion

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The tax authorities in Osun and Delta states have fined Google Nigeria and Meta Platforms, Inc, $150 mllion and $200 million respectively for alleged non-remittance of Withholding Tax.
The fine is specifically for the Withholding Tax allegedly deducted from content creators and entertainers in the two states from 2020 till date.
This is contained in separate letters signed by Messrs Sola Adewunmi, and Solomon Ighrakpata, Executive Chairmen, Osun and Delta States Internal Revenue Service (IRS) respectively.
The letters, also signed by Ademola Odetunde, Chief Operating Officer, LafriquePromedia Ltd., the revenue collection agent for the states, were made available to The Tide’s source in Lagos, yesterday.
According to Odetunde, LafriquePromedia is also consulting for the IRS of Plateau, which is also facing the same challenge and coming up with similar demand.
He said that the companies were issued a 14-day notice of compliance, effective July 12 and July 19 respectively, from the affected states.
He said that the companies, upon the receipt of those letters, would face the consequences for non-compliance.
Odetunde said that the states were demanding for the payment of $50 million and $200 million respectively, being assessed withholding tax deducted, but not remitted by the companies, at the rate of five per cent to the states.
He said that the revenue or payment were from digital services provided to content creators, practitioners in the entertainment and creative sector within Delta and Osun states.
“By this demands and notices for compliance, we hereby advise your companies to comply with our demands through our revenue agent within the next 14 days.
“We want to bring your attention to the fact that the concept of WHT is a form of advance payment of income tax, which is deductable at source on payment made for certain commercial transactions by Nigerian customers.
“Same must be remitted to the appropriate tax authorities – Federal, by corporate bodies, or State Internal Revenue Service, by individual, enterprises and partnership within 21 days after the end of the month the transaction was made,” he said.
According to him, the companies, as an operator of Social Media Platform within the Osun and Delta states’ digital landscape, are mandated to withhold tax in line with the provisions of the extant law.
Odetunde, who is also a legal practitioner, added that the law required non-resident companies providing digital services in Nigeria to withhold tax.
He said that this also meant that the companies were required by law to collect and remit WHT on digital services provided to customers within the Osun and Delta states’ digital landscape.
He recalled that the concept of withholding tax was introduced to curb tax leakages, gather information of commercial activities being carried out by both resident and non-resident businesses.
Withholding tax is mostly used for collecting tax on non-residents’ income in Nigeria where cross border enforcement is impracticable.
Odetunde said the procedure for implementing withholding tax for non-resident companies operating digital services within Osun and Delta states’ digital landscape included the deduction of such tax from payments for specified activities.
He said the procedure also included services provided to content creators and online practitioners within Osun and Delta states as well as remittances of the tax to the relevant tax authorities through its designated agent.
The legal practitioner also said that the submission of withholding tax schedules to the relevant tax authorities showing details of the beneficiaries such as the name and address of the recipient, was part of the procedure.
It also included the gross amount of the transaction, the amount of the tax and the percentage that had been deducted among other things.
Odetunde said: “We observed that over the years your companies willfully refused, failed and neglected to remit the withheld tax to the local tax authority for Osun and Delta states, Nigeria.
“Take further notice that, when a non-resident company deducts WHT from payment for digital services provided to customers within Osun and Delta states digital landscape.
“Without remitting the same to the local tax authorities, which is Osun and Delta States Internal Revenue Services, a criminal offence has been committed by such non-resident company.
“The law permits us to prosecute the offending non-resident companies and take necessary steps to recover the WHT.”
Odetunde warned the companies to also note that the penalty for non-compliance for companies, including non-resident companies, upon conviction, included a fine of 10 per cent of the amount not deducted or deducted but not remitted.
He said: “This shall be added thereto, plus interest at the prevailing commercial rate presently at 21 per cent, while the officers of a non-compliant corporate taxpayer may be imprisoned or fined or both, if found guilty of tax crime.
“We do hope that this polite demand notice for compliance will jolt your company to do the needful without further delay.”
According to Odetunde, the revenue agent has been writing to the companies since Oct. 13, 2023 in respect of the matter, to no avail.

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Horsfall’s Legacy ‘ll Inspire Generations Yet Unborn -Fubara

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Rivers State Governor, Sir Siminalayi Fubara, has described the late Chief Albert Korubo Horsfall as a distinguished statesman whose contributions to national development brought honour and distinction to the Kalabari Kingdom and Rivers State.

Fubara said Horsfall’s life of service, patriotism, integrity and commitment to humanity had left an enduring legacy that would continue to inspire generations.

The governor spoke through the Secretary to the Rivers State Government, Dr Dagogo Wokoma, at the funeral service of the late elder statesman last Saturday in Buguma, Asari-Toru Local Government Area of the State.

He described Horsfall as a patriotic Nigerian whose leadership and dedication to the country’s development earned him a place in the nation’s history.

“Chief Horsfall was a distinguished statesman whose life was defined by service, patriotism, integrity and commitment to humanity.

“His contributions to our nation, particularly through his service as Director-General of the State Security Service, pioneer Director-General of the National Intelligence Agency and Chairman of OMPADEC, remain significant milestones in our national history,” Fubara said.

The governor noted that the late Horsfall’s contributions to national security, intelligence administration and the development of the Niger Delta would remain part of his enduring legacy.

“His legacy of leadership, national service and dedication to development will remain an enduring source of inspiration to generations yet unborn,” he added.

Fubara urged the bereaved family, the Kalabari people and other Nigerians to uphold the values of peace, unity and selfless service exemplified by the late elder statesman.

The funeral service attracted several dignitaries, including the Director-General of the Department of State Services (DSS), the Director-General of the National Intelligence Agency (NIA), a representative of the Bayelsa State Governor, the Managing Director of NDDC, Chairman of PENDEF and the Regent of the Kalabari Kingdom.

Also in attendance were the Rivers State Commissioner for Education, the Commissioner for Special Projects and other government officials, traditional rulers and stakeholders.

 

 

 

 

 

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Fubara Reaffirms Commitment To Grassroots Dev

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Rivers State Governor, Sir Siminalayi Fubara, has reaffirmed his administration’s commitment to partner with local government councils that prioritize the welfare and development of people at the grassroots.

Fubara stated this last Thursday in Nkoro Town during the commissioning of the newly built Sir Siminalayi Fubara Corps Members’ Lodge, executed by  Hon. James A. James, the Chairman of Opobo/Nkoro Local Government Area.

Represented by his Chief of Staff,  Mr  Sunny Ewule, the governor said the project goes beyond a building to represent hope, hospitality and responsible leadership.

According to him, providing decent and safe accommodation for Nationl Youth Service Corps (NYSC) members who leave their comfort zones to serve in communities is the least government can do.

“Today we are not just commissioning  a building, we are commissioning hope, hospitality and responsible leadership. The Chairman of Opobo/ Nkoro LGA,  Hon. James A. James has understood a very simple truth that those who come to serve us must serve with dignity,.

“Our young graduates who serves under the NYSC scheme leave the comfort of their homes and travel far to contribute to our communities, they teach our children, they  work in our health centres, and they become parts of our families.

“The least we can do is give them a decent, safe and befitting place to lay their heads. What Hon. James A. James has done today is in total alignment with the vision of  this administration, an administration that believes in people, that prioritises welfare and that believes development must be felt in every local government and not just in Port Harcourt” he said.

Fubara further urged the beneficiaries of the corpers lodge to make good use of the facilities of the newly built  edifice and be  good ambassadors of Nigeria,  respect the culture and traditions of the host community while  continue to serve with dedication and patriotism.

“This Corpers lodge will enhance the security and welfare of serving corps members, boost their morale and make Opobo/Nkoro and even more attractive place for posting, it is a strategic investment in human capital and in peace building,” he said.

He commended the Opobo/Nkoro Council Chairman for aligning with his administration’s vision of ensuring development is felt in all 23 local government areas of the State, and not just in Port Harcourt, adding that the lodge is a strategic investment in human capital, security and peace building.

In his goodwill message, the Rivers State NYSC Coordinator, Mr. Moses Oleghe, said the accommodation was 85 percent of Corps members’ challenges.

Oleghe thanked Governor Fubara for the recent  increase in the  State allowances for Corps members to N35,000 for those in 21 rural areas and N20,000 for those in Obio/Akpor and Port Harcourt City LGAs, describing the gesture as a moral booster for the corps members.

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 IGP Secures Foreign Training Offer For 5,000 Police Officers

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The Inspector-General of Police, IGP Olatunji Disu, has secured an offer of specialised training for up to 5,000 Nigerian police personnel under a proposed security cooperation involving Nigeria, the United States and Italy.

The Force Public Relations Officer, CSP Ani Iniedu, disclosed this in a statement issued at the Force Headquarters, Abuja, at the weekend.

The initiative is aimed at strengthening the operational capacity of the Nigeria Police Force to tackle insurgency, terrorism, kidnapping, arms trafficking and other emerging security threats across the country.

According to the statement, the proposed training programme will focus on counter-insurgency operations, intelligence-led patrols and tactical operations, particularly in difficult rural and forested environments.

Other areas of training include critical infrastructure protection, digital and scientific forensics, cybercrime investigations, explosives detection, financial investigations, asset tracing and anti-extortion operations.

The programme is expected to extend beyond the Police Mobile Force to other specialised units, including explosive ordnance disposal and forensic teams.

As part of the engagement, Disu met with the Commander-General of the Italian Carabinieri, Lieutenant-General Salvatore Luongo, to explore areas of technical assistance, professional training and institutional cooperation.

The police chief and his delegation also visited the Carabinieri Centre of Excellence for Stability Police Units in Vicenza, Italy, where they assessed training facilities and explored opportunities to adapt specialised policing programmes to Nigeria’s security needs.

Proposals discussed during the visit included command courses for 40 senior police officers, leadership training for 100 junior commanders and the deployment of a mobile assistance team to support Police Mobile Force training schools in Gwoza, Borno State, and Ila-Orangun, Osun State.

The discussions also covered the development of a national stability policing doctrine and standard operating procedures to improve professionalism, operational coordination and civilian protection, particularly in communities recovering from conflict.

Other areas of proposed cooperation include canine operations, forensic science and mounted policing, including horse breeding and local capacity development for effective public order management.

To formalise the proposed partnership, the IGP has initiated moves towards a Memorandum of Understanding covering specialised training, technology transfer and operational procedures.

He also invited an Italian Carabinieri assessment team to Abuja to identify priority needs and develop implementation arrangements.

Disu reaffirmed the commitment of the Nigeria Police Force to international partnerships that will strengthen operational readiness, improve investigative capacity and enhance the protection of lives and property.

The statement did not, however, indicate when the proposed training programme would commence or provide a definite implementation timetable.

 

 

 

 

 

 

 

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