The Oyo State Board of Internal Revenue on Wednesday said it sealed offices of the Ibadan Electricity Distribution Company (IBEDC) over a tax default in excess of N400 million.
This was disclosed in a statement by the revenue board chairman, Femi Awakan.
This is coming hours after IBEDC raised an alarm that the state government sealed its offices over the company’s disconenction of power supply to the State Secretariat which houses the Governor’s Office over N450 million debt.
Awajan, however, said the state government duly obtained a distraining order of the Oyo State High Court before sealing some of the offices of the power distribution company.
The IBEDC said earlier that, “Oyo State Government is owing IBEDC a whooping consumption outstanding of N450 million for over a period of three years.
“No business in this country can run successfully with such a huge outstanding.”
The state government said it had applied for the warrant to enforce the payment through suit No. M/122/2022, which has the governor, the Attorney-General and Commissioner for Justice and the Board of Internal Revenue Service of Oyo State as applicants, while IBEDC is the respondent.
The state government had, in line with its avowed commitment to the observance of the rule of law, filed an application before Justice O.M Olagunju, seeking the issuance of a warrant authorising its officers to “distrain upon any land, premises or places of which the respondent (IBEDC) is the owner.”
The revenue agency said the court order was to enable the state government to enforce the payment of arrears of taxes to the tune of N400,546,111,41k, being taxes accumulated by the IBEDC in respect of Harmonised bills, Infrastructure bills, Tax Audit bills and Signage bills, and which the company has failed to pay in the last two years.
“It is to be noted that the IBEDC has a statutory obligation to deduct and remit revenue bills to the government of Oyo State through the Board of Internal Revenue.
“It is also to be noted that the distribution company failed and neglected to remit any such personal income tax of its employees within the period under review and that the Board of Internal Revenue several times served requisite demand notices calling attention to the company’s tax liabilities/obligations,” the statement said.
Relying on section 45 of the Revenue Law of Oyo State, the presiding judge, Justice O.M Olagunju, issued the warrant to seal up IBEDC offices.
“Consequently, the Board of Internal Revenue, acting on the valid court order, put effect to the warrant and sealed off some of the offices of the IBEDC in order to enforce the payment of the outstanding bills,” the revenue board boss added.
