Connect with us


Court orders sale of properties of 2 companies to settle evaded tax



Court orders sale of properties of 2 companies to settle evaded tax

The Federal High Court, Abuja, has ordered for sale two landed properties belonging to two tax evaders namely Zaibadari Company Limited and Tradecraft Nigeria Limited, to defray N35.9 million tax debts.

FIRS had approached the court seeking an order to sell the landed properties of the two firms to defray the tax liabilities which amounted to N18. 8 million against Zaibadari and N17.1 million against Tradecraft.

According to a statement by the agency during the weekend, the two firms had failed to honour series of demand notices issued to pay their outstanding tax liabilities.

Counsel to the FIRS, Bar. Collins Ugwunebo told the court that Zaibadari was indebted to the FIRS to the tune of N18. 8 million, while Tradecraft owed the Service N17.1 million in 2015.

Read also: STAMP DUTY: RMAFC to scrutinize banks’ books

The statement further said FIRS issued and served demand notices on the two firms and gave them 30 days within which to pay arrears of taxes to the FIRS but both firms failed to pay the arrears of taxes within 30 days.

FIRS relied on Section 33(2) of the Federal Inland Revenue Service, Establishment Act, 2007 and served Warrants of Distraint on the Respondents giving them 14 days to pay the tax due or risk the sale of their properties to settle the tax debt.

Cornelius Ugwunebo in an affidavit told the court that Zaibadari‘s assessment was based on 20 per cent of N62,675, 200 million which was the “deemed profit of the respondent (Zaibadari) landed property located at Plot 551 Wuye B03, FCT Abuja, valued at N313, 3376,000 million”.

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

If you are motivated and passionate about building a global society, founded on justice, equity, fairness, transparency, accountability and superior knowledge, kindly consider donating to Ripples Nigeria’s solutions journalism.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now