Ebonyi Ex-Gov, Sam Egwu’s Hotel, Kabo Air, ITC Sealed off over Tax Liabilities

Grace Court Hotel and Suites belonging to Senator Sam Egwu, a former governor of Ebonyi State, has been sealed off by the Federal Inland Revenue Service (FIRS) over sundry tax liabilities.

Egwu’s hotel, located at 14, NnA Street, Abakaliki, was owing about N5 million in sundry tax liabilities, such as Company Income Tax (CIT), Excess Dividend Tax (EDT) and Value Added Tax (VAT).

The FIRS enforcement team met a stiff resistance as a man said to be the son of the sitting senator resisted them.

But through the intervention of the Commissioner of Police, Ebonyi State Command, Titus Lamorde, who dispatched a special team of operatives, the FIRS team eventually executed the warrant of restraint earlier served the hotel management by the revenue-collecting agency.

Also, the FIRS team shut Sacramental Resources Ltd situated at Water Works road, Abakaliki, for an outstanding 2016 tax debt of N454,000.

Earlier in the week, FIRS sealed the offices of Kabo Airlines, Monaco Ventures Limited and Paki International Motors, all in Kano, over tax liabilities

The service also shut the Imo Transport Company Limited (ITC), in Owerri Wednesday over a N42 million tax debt incurred between 2008 and 2016.

Kabo Airlines owes N149,707,949.03 from the assessment year of 2004 to 2013.
According to the head of the enforcement team in Kano, Mr. Bukar Gana, the airline’s liabilities are made up of Income Tax (IT) and Education Tax (ET). He explained that the company did not contest the liabilities, an action which led to the sealing off of its premises on Ashton Road, Kano.

Also sealed off was Paki International Motors, which owes Company Income Tax (CIT) totaling N51,148,117.57, accumulated between 2008 and 2014.
The enforcement team similarly sealed off Prince Hotel (Sojuna Hotel) over its N8,359,680.76 liability spanning from 2014 to 2016.

In its defence, the hotel management pleaded that the default was as a result of non-disclosure of the liability by the company’s tax auditor. It promised to pay 50 per cent of the liability immediately and the remaining in April.

Phamadex Nigeria Limited, which owes withholding tax amounting to N572,331.72 from 2014 to 2015 assessment year, presented evidence of payment of the liability. However, the company was yet to pay the penalty and interest that had accrued on the liability. The team gave the company the grace to pay up within 24 hours.

The FIRS team also visited the premises of Monaco Ventures Limited over an Education Tax debt of N385,922.50. The company was also sealed off by the team. The enforcement exercise continues in other parts of the country.