The Federal Inland Revenue Service (FIRS), has began investigations into the operations of a steel group: PARCO Entreprises, over its refusal to open its books to and provide FIRS with requested documents for tax audit.
Deploying some of its latest audit tools to identify tax evaders, officers of the FIRS, carried out an enforcement on the company a little over a week ago.
One of such audit tools, according to a statement signed by FIRS headof communication and liason, is the risk engine tool for identification of tax evaders or non-compliant taxpayers. Companies flagged by such tools are either subject to tax audit or tax investigation.
One of such companies flagged off by the FIRS, risk engine is Parco Entreprises Nigeria Limited, with associated interests and companies in steel, fertilizer, chemicals, foundries and mines, with a trans-Nigerian reach.
In line with its statutory mandate and the provisions of Sections 58 and 60 of the Companies Income Tax Act (Cap. 21 LFN 2004) and Sections 26 and 27 of the Federal Inland Revenue Service (Establishment) Act 2007 (FIRSEA), FIRS commenced investigation via a letter dated 22 April 2014 requesting for a pre-audit meeting which, held on April 30, 2014.
Further requests to provide accounting and other business records requested of them repeatedly by FIRS, in June were not granted.
Consequently, the FIRS Management pursuant to the power vested on it by Section 36 of the FIRSEA, approved an enforcement action as a result of the company’s failure to oblige FIRS with requested documents and to open up its books for audit.
The enforcement exercise was carried out by FIRS recently at the office of the company at 1, Commercial Road, Eleganza Plaza, Apapa, Lagos State where documents and accounting records of the company were retrieved for audit purposes.
The statement further advised taxpayers to beware as investigation exercise is ongoing and there is no hiding place for tax defaulters.
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