Chevron N1 billion Delta tax revenue missing

The alleged disappearance of over N1 billion tax deductions paid by one of the multi-national oil companies, Chevron Nigeria Ltd, through an old generation bank to a new era bank that collects revenue for the government of Delta State has stirred misgivings between the two financial institutions.
Delta State Board of Internal Revenue (DBIR) is striving to trace in which bank’s possession the missing money is.
It was learnt that Chevron mandated her bankers (the old era bank) to transfer the N1 billion to the state government’s coffers through its collecting bank (the new generation institution), but the money which was allegedly paid since December 27, 2012, has not been credited.
The old bank is firmly insisting that the money has been successfully transferred into DBIR’s account with the new one, which, however, insisted that it had not received the fund.
DBIR’s Executive Chairman, Joel-Onowakpo Thomas has confirmed the development, saying: “It is true that the over N1 billion paid by the multi-national oil company is missing between the two banks.

TSKJ to pay $35m tax liability to FIRS

TSKJ, the construction contractors to the Nigeria LNG Limited, NLNG, has been ordered to pay N5.14 billion ($35,938,087) as tax liabilities to the Federal Inland Revenue Service, FIRS. by the Abuja division of the Tax Appeal Tribunal. The order specifically concerns TSKJ II, a multinational company and parent firm to TSKJ Nigeria Limited.

It follows an appeal by TSKJ II, challenging the FIRS Tax assessments in a contract for the construction of the Nigeria liquefied natural gas project. The assessment is for the period, 2006 to 2008. Acting Chairman of the Tribunal, Hon. Nnamdi Ibegbu (SAN), who issued the order, also awarded N300, 000 against TSKJ II as cost of the three appeals decided in favor of FIRS.

The company (TSKJ II) had filed three separate appeals with suits No TAT/ABJ/APP1010/2008, TAT/ABJ/APP/006/2006 and TAT/ABJ/APP/017/2010 before the tribunal.

In the appeal to the Tax Appeal Tribunal by TSKJ II against the FIRS assessment, the company challenged FIRS refusal to amend its assessments for 1997-2002 and additional assessment raised by the Service and 550, 556.74 dollars tax liabilities for 2008 and 2009 tax years, among others.

In the first ruling on the appeal of FIRS assessment for 1997-2002, the Tax Appeal Tribunal upheld FIRS assessment that TSKJN is to pay $ 16,688,267 dollars as tax. Also, in the ruling, the court upheld FIRS assessment of $ 19,249,820 million dollars. In trying to fulfill its tax obligations for the years in question, TSKJ II filed its tax returns, under Section 26 of Companies Income Tax, CITA, but made deductions on expenses incurred by its subsidiary, TSKJ Nigeria Limited, but, the FIRS scoffed at that. FIRS maintained that since TSKJ II did not file its audited accounts, but filed under Section 26 of CITA, deductions in favor of TSKJ Nigeria Limited were not allowable.