In response to tax evasion, the Federal Capital Territory Internal Revenue Service (FCT-IRS) has taken action by sealing off Regency Hotels, a school, and three business premises within the city.
Heading the enforcement team, Mr. Festus Tsavsar, Acting Director of Legal Services at FCT-IRS, noted that the closure of these establishments aligns with a Court Order that the IRS obtained.
Among the sealed entities are Gratias International School, Rural and Urban Homes Ltd, Trevari International Company, and Phenomenon International Company.
Tsavsar highlighted that the hotel and business premises had violated FCT tax laws by neglecting to submit their annual returns despite receiving multiple notifications, including a court summons.
“Today, we executed the Court Orders which mandated FCT-IRS to seal off the premises of taxpayers who were non-compliant,” Tsavsar stated.
“We have duly adhered to the court order by sealing off the premises as instructed.”
“We proceeded to Gratias International School situated in Games Village, Kaura, and enforced the closure.”
“Their offence stemmed from their persistent failure to file annual returns despite numerous warnings, including a Court Summon. However, the school’s management chose not to cooperate.”
Expressing concern over the school’s recurrent non-compliance with tax regulations, Tsavsar emphasized that this behavior amounted to criminal tax evasion.
He further pointed out that the management resorted to renaming the school as DGIS College in an attempt to evade tax obligations, which is also considered an offense.
“The school has completely neglected tax payments and has evaded filing annual returns since its inception,” Tsavsar remarked.
After sealing the school, the team proceeded to Residency Hotels at No. 4, Port Harcourt Crescent, Area II, Garki, which was also sealed due to failure to file annual returns.
“Subsequently, we sealed Rural Urban Homes Ltd in Utako and two business entities operating within Transcorp Hilton, Abuja, namely Trevari International Company and Phenomenon International Company,” Tsavsar added.
He cautioned the affected business proprietors against any unauthorized attempts to reopen the sealed premises and advised them to seek a Court Order if they intended to do so.
“Any breach of the Court Order to unseal the premises will result in criminal charges, leading to possible arrest,” Tsavsar warned.
“They will face prosecution under the tax laws, specifically under Section 81 of the Personal Income Tax Law. Upon conviction, they may be sentenced to six months imprisonment along with a fine,” he further explained, citing NAN reports.