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FCT-IRS obtains court order to shut down school, hotel, others over unpaid taxes

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has taken decisive action against tax evasion by sealing off Residency Hotels, a school, and three business premises in the capital city.  

Mr. Festus Tsavsar, Acting Director of Legal Services at FCT-IRS, led the enforcement team in executing the closure on Thursday in Abuja, which was carried out in line with a court order obtained by the IRS, according to News Agency of Nigeria. 

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  Tsavsar painted the gravity of the situation, stating, “Today we went out to execute the Court Orders, which ordered the FCT-IRS to seal off the premises of defaulting taxpayers that were brought before it. We have been able to effectively comply with the court order by sealing off the premises as directed.” 

 The enforcement team’s visit to Deo Gratias International School in Games Village, Kaura, resulted in the sealing off of the premises due to the school’s persistent refusal to file annual returns, despite multiple notices and a court summons.  

Tsavsar clarified that the affected premises, including Deo Gratias International School, Rural and Urban Homes Ltd, Trevari International Company, and Phenomenon International Company, had violated FCT tax laws by failing to submit their annual returns despite numerous notices and a court summons. 

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What he said 

“We went to Deo Gratias International School located in Games Village, Kaura, and sealed it off. 

“The offence they committed was refusal to file their annual returns in spite of many notices, including a Court Summon but the school management refused to comply. 

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“We are at their premises and the management refused to attend to us; and refused to open their doors, in spite of many calls for them to do so to enable us to enforce the court order,” he said. 

What to know

Tsavsar expressed concern over the school management’s continued non-compliance with tax laws, describing their actions as tax evasion, a criminal offence. He noted with dismay that the school had resorted to changing its name to DGIS College in an attempt to evade tax payments. 

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 Moving swiftly, the team proceeded to Residency Hotels, located at No. 4, Port Harcourt Crescent, Area II, Garki, sealing it off for similar violations regarding annual returns.

They then sealed off Rural Urban Homes Ltd in Utako, along with two business premises, Trevari International Company, and Phenomenon International Company, situated in Transcorp Hilton, Abuja. 

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 Tsavsar issued a stern warning to the affected business owners, cautioning against any attempt to reopen the sealed premises without obtaining a court order. 

 He emphasized the consequences of such actions, stating that it would constitute a criminal offense, punishable under the tax law.  

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Tsavsar highlighted the potential penalties, including imprisonment for up to six months and hefty fines, as stipulated in Section 81 of the Personal Income Tax Law. 

 Furthermore, Tsavsar issued a general warning to all tax defaulters, affirming that FCT-IRS would vigorously pursue non-compliant companies and individuals. He urged taxpayers to adhere to existing tax laws, fulfill their tax obligations, and submit their annual returns promptly. 

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