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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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Army Asks ICC, AI, Others To Take Action Against IPOB

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The Nigerian Army has asked Amnesty International (AI) and the International Criminal Court (ICC) to take “immediate action” and hold the outlawed Indigenous People of Biafra (IPOB) and its sponsor, Simon Ekpa, accountable for crime against civilians in the South East.

It said the international community must condemn the mistreatment “in the strongest terms” of an unarmed and law-abiding citizen by IPOB in the region.

The Army made the call in a statement by its spokesman, Maj-Gen Onyema Nwachukwu, yesterday, while reacting to a viral video that showed IPOB members torturing an ex-soldier of the Nigerian Army.

The statement read: “The Nigerian Army has taken serious note of a disturbing video circulating online, posted by the self-acclaimed Prime Minister of IPOB, Simon Ekpa. In the appalling footage, an ex-soldier, Corporal Toriola Adewale, who honourably retired from the Nigerian Army six years ago, was subjected to brutal torture by the so-called IPOB/ Biafra Liberation Army.

“He was also forced to deliver coerced messages to active military personnel, urging them to abdicate their constitutional responsibilities and abandon their duties. This defenceless citizen was further compelled to falsely claim he was treated well while being held captive.

“It must be unequivocally stated that the claim by IPOB and its terrorist leader that ex-corporal Toriola is still serving in the Nigerian Army is far from the truth. This outrageous propaganda by the IPOB terrorist group is undoubtedly an attempt to justify their savage mistreatment of an unarmed, law-abiding citizen who served his country meritoriously. Such dehumanizing acts must be condemned in the strongest terms by the international community.

“The Nigerian Army therefore urges all Nigerians to disregard this malicious video and stand united against the vile acts of terrorism perpetrated against Nigerians, and particularly, the good and law-abiding people of South East Nigeria by IPOB terrorists. It is no gainsaying that an overwhelming majority of Nigerians in the South East and across the nation have already rejected the criminal propaganda spread by IPOB.

“The savage treatment of innocent citizens like ex-corporal Toriola and other law-abiding Nigerians must not be treated with levity. We call on all relevant international organisations, including Amnesty International and the International Criminal Court, to take immediate action and hold Simon Ekpa and other IPOB terrorist elements accountable for these heinous crimes.”

According to the statement, the Army and other security agencies have recently intensified operations to fight terrorism and insurgency in the Southeast and other parts of the country.

It added, “The recent annihilation of key terrorist leaders in identified terrorists’ strongholds is indicative of this commitment.

“The villainous acts of terror by Simon Ekpa and his accomplices must come to an end, as justice will soon catch up with them. They can run, but they can’t hide forever.”

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281 Inmates Missing From Custodial Centre After Borno Flood 

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The Nigerian Correctional Service (NCS) has declared 281 inmates missing from the Medium Security Custodial Centre, Maiduguri, the Borno State capital.

The Service noted that this followed an evacuation process in the aftermath of the flood incident in the State, as seven inmates were returned to the centre.

NCS, in a statement by its spokesman, Umar Abubakar, in Abuja, yesterday, released the details of the inmates, including their biometrics.

Abubakar said, “The Nigerian Correctional Service has observed the flooding currently being experienced in Maiduguri, Borno State, and its environment.

“The unfortunate incident has left scars, bringing down the walls of the correctional facilities, including the Medium Security Custodial Centre, Maiduguri (MSCC), as well as the staff quarters in the City.

“Upon the evacuation of inmates by officers of the service with support from sister security agencies to a safe and secure facility, 281 inmates were observed to be missing.”

He, however, added that “it is important to note that the service is in the custody of their details, including their biometrics, which is being made available to the public below.

“The service is working in synergy with other security agencies as both covert and overt deployments have been activated to look out for them.

“Presently, a total of seven inmates have been recaptured and returned to custody, while efforts are on the ground to track down the rest and bring them back to safe custody.”

While this effort is on, the public is assured that the incidence does not impede or affect public safety.”

Recall that the Service’s spokesman had, in a statement last Tuesday, assured that the NCoS officials were working diligently to manage the flood incident that had affected the custodial centre.

Abubakar said, “As the agency responsible for the safekeeping of inmates, we want to assure the public that we are taking all necessary measures to ensure public safety, evacuate inmates to a safer facility, ensure smooth operations, and collaborate with sister security and relevant agencies in providing support and assistance to those affected.

“Contrary to initial reports, the officers and men of the command are working around the clock to ensure a smooth and secure transfer process.

“We appreciate the support and guidance from the Presidency and the Vice President’s visit to Maiduguri to assess the situation.”

According to the National Emergency Management Agency, more than 23,000 households have been hit by the rapid rise of water following the weekend rupture of the Alau Dam on the Ngadda River, 20km south of Maiduguri.

The flood began after the dam overflowed following heavy rains leading to the town’s worst flooding in 30 years, according to the United Nations Human Rights Refugee Council and Maiduguri Metropolitan Council residents.

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Parents Threaten Boycott Over 200% Hike In Lagos Boarding School 

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Parents of students in Lagos Model Colleges are demanding the reversal of a recent 200% increase in boarding fees, accusing the Lagos State Ministry of Education of corruption and insensitivity.

The Chairman of the Parents’ Forum of Lagos Model Colleges, Surv. Dapo Dawodu, raised the alarm on Saturday during the Forum’s meeting in Lagos.

The parents’ forum also threatened to keep their children at home until the fee hike is reversed.

The Tide reports that on Friday, 13th September, the Lagos State Government increased boarding fees in all secondary schools from N35,000 to N100,000 per term.

A letter to all boarding school principals, signed by the Director of Basic Education Services at the Lagos State Ministry of Basic and Secondary Education, Olufemi Asaolu, read: “I have the directive of the Honourable Commissioner to inform all public boarding schools in Lagos State that the State Government has approved the review of the boarding fee payable in all public boarding schools. The newly approved fee is N100,000 only.”

In response, the parents forum, in a letter, dated 14th September, titled “Re: Increment in Fees”, and addressed to parents, described the hike in boarding fees as mindless, provocative and offensive.

The letter partly read: “In the last 24 hours, we have witnessed an avalanche of disdain, anguish, and frustration at the mindless and provocative 200% increase in boarding fees for our children, imposed by the corrupt officers of the Lagos State Ministry of Education!

“It is unfortunate that the unbridled greed of these enemies of the good people of Lagos State (you, the parents) was facilitated by the ministry’s leadership.

“To put it clearly, the fee of N100,000 per term, when paid in a school of 1,000 students, translates to N100 million for the school principal to feed the children for just three months!

“Previously, the same exercise was carried out by the same principal for less than N35 million.

“In a school of 500 students, a principal now wants to spend N50 million for an exercise that used to cost below N17.5 million, paid by parents. If our Honourable Commissioner is not scandalised by this, we parents find it exceedingly offensive!”

The Forum also reminded the Lagos Ministry of Education to review their proposed school feeding and welfare initiative for implementation.

The letter continued: “In February 2024, we proposed a solid scheme for the feeding and welfare of our children in these schools, which the ministry has not been able to fault to date.

“Lagos State prides itself on a free education policy, which should not exclude the boarding programme.

“Parents of boarding students have shown understanding with past governments when the state’s finances were strained many years ago.

“However, with the current government receiving over 350% more funding, boosted by the removal of subsidies—which has drastically reduced parents’ spending power by over 600%—we find it unacceptable that parents are now subjected to further hardship through this unnecessary fee hike.”

The Forum is urging Lagos parents to keep their children at home starting from yesterday,15th September, 2024.

According to the letter, “After considering your concerns, we agree that to avoid swallowing this unjust bait from the government—especially given that some principals have threatened not to allow our children into the boarding houses without the payment of N100,000—we have no option but to ask parents to keep their children at home tomorrow, Sunday 15th until this unreasonable decision by the ministry is FULLY REVERSED! NO REVERSAL, NO RESUMPTION!”

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