The burden of multiple taxation in Anambra and the relentless war thereto, amidst COVID 19 Pandemic (Part 5)

By Odogwu Emeka Odogwu

Previous (Part 4)….The burden of multiple taxation in Anambra and the relentless war thereto, amidst COVID 19 Pandemic (Part 4)

Traders in Onitsha protest, demand tax receipts from Anambra govt

Traders at Ose-Okwodu Market in Onitsha appealed to Gov. Willie Obiano to prevail on his aides to issue receipts for payments made to the state government in 2014.

The traders who made their complaint during a peaceful protest at major streets in Onitsha, carried placards with inscriptions as “Ose-Okwodu market traders want receipt of money they paid into government account”.

The placards also read “His Excellency, please save us from official manipulators” and “Akpokue Dike, we want the receipts for the money paid into government accounts”.

Addressing newsmen, the Chairman of Ose- Okwodu Market Traders Association, Mr Donatus Uzo, said they had been patient enough on the issue.

Uzo said that they paid N6,000 made up of tax N3,000; stallage fee N1, 800 and development levy N1,200 with no receipt to show for them.

“We paid, gave them the bank teller and the accountant-general of the state confirmed the money we paid into the government account but the government refused to give us our receipts.

“Today we went straight to complain to the governor but unfortunately we could not see him, rather the Special Assistant to the Governor on Special Duties, Mr Ikem Uzoechina, was the person who received us.

“He told us to put our complaint in writing with the bank teller of the money we paid attached to the letter,” he said.

When contacted on the matter, the Director of Trade in the state ministry of commerce, trade and industry, Mr Mike Uzuagu, said that there was a problem in identifying full and half shops in the market.

Uzuagu noted that the commissioner for commerce, trade and industry had directed that before they would be issued with receipts, he would assess the shops and classify them appropriately.

Hausa tomatoes dealers cry out over multiple taxation

The members of the Tomatoes Dealers union in Onitsha Tomatoes market raised alarm over untold extortion by some people in Onitsha using government’s name  to perform  their ugly  act of extortion.

Chairman of markets, Mr John Nwodo Ifeanyi informed that because of extortion from people believed to be government agents, they resorted to collecting N1,000 each for a basket of tomatoes or Pepper.
He listed the money being paid as follows, the Seed Dealer Market Union collect #1.5million per a month which they paid  #9 million every Six months. ,peppers market owned by private individual collect #1million  and they paid (#6million)six million naira plus ,six private rooms built by the  agent they paid #360,000 every Six months.

He claimed that an agent called Emperor collects N720,000 on behalf of ASMATA  every six months .,  HAULAGE  and PRODUCE toll collectors along head bridge market  collects  #16,000 per a trailer loads  of  tomatoes or peppers. ASWAMA #20,000 every week , and they paid IGR #40,000 to state government every week. He claimed that recently one million naira formerly paid to former President General of Anambra traders, now House of Representatives member, Hon Okwudili Ezenwankwo every week was removed”.

The chairman Hausa section of tomatoes market, Alhaji Dogo lamented that their people who came to Onitsha newly and not familiar with the produce and haulage collectors had suffered untold hardship as their goods totally damaged sometimes, as the produce /haulage toll collectors would cease their vehicles key or remove their motor battery for the whole day and beat them up.
He alleged that they spend money to IGR vendors without receipts in Onitsha.

The Secretary of Hausa section and also the Chairman of taskforce of the markets Mallam Bala also lamented on ill treatment been mated on them and called on the State government and stakeholders to save their soul from this painful situation

Double my IGR, I will double your pay, Obiano tells Anambra workers

To buttress that the state indeed needed to shore up its revenue, the Anambra State governor, Willie Obiano charged workers in the state to double the state’s internally generated revenue, as he would double their pay.

The governor who spoke at Jerome Udorji Secretariat during 2020 year’s civil service day celebration , said, “In 2016 I increased your salary by 16 percent without being prompted. What is important is that I did it without prompting so I encourage you to work hard to increase our IGR. If you increase my IGR to N3bn, I will increase your salaries again.

“I had already promised to pay your minimum wage, but beyond the minimum wage, if you increase my IGR, I double your pay.

“I want you people to support our IGR drive. Report those stealing our money. If you do it, we will compensate you with higher salaries.”

Tax Evasion: Anambra State Government enforcement on Private -Owned Companies

The Anambra State government through the State Internal Revenue Service commenced enforcement on various private Owned businesses for tax evasion in the State which was at the tune of over six hundred million naira (N600M).

The exercise which took place at various locations of the State including Awka, Onitsha, Nnewi, and environs went with an enforcement team of the establishment’s staff, the police and civil defence corps.

The Internal Revenue Service was armed with court order from the State High Court, empowering it to seal off the various locations till they comply.

Some of the sealed locations include Suburd Consortium producing Prepaid Meters in Awka, owing over five hundred million naira from January 2011 to December 2016.

Eteleson Industries in Ogbunike owing State government over twenty one million naira, having evaded tax between 2010 and 2015, while Nelly New Town Hotels and Suites Oba owes over 8 million naira between 2014 to 2016, while,  at Ejiamatu Microfinance Bank Ojoto which owes over 16 million naira, some of their items were carried away by the Service.

Good news Academy, Ogidi and Divine Favor Pharmaceutical Company Nkpor owe outstanding of over 700 thousand naira and over 5 million naira respectively for a period of 2011 to 2016, and 2010 to 2015 respectively.

The enforcement team also visited and sealed off Delendu Aluminium Manufacturing Company Onitsha for evading tax to the tune of over eight million naira between 2016 and 2017.

Chairman of the State Internal Revenue Service, Dr David Nzekwu explained that the exercise is in line with State government’s renewed drive to generate it’s revenue, as mandated by Governor Willie Obiano, saying that the Revenue Service always follow due legal process to help the State citizenry pay their tax.

Dr Nzekwu, while stressing that it is expected of new Companies to register within six months of operation and render their tax returns in respect of companies and individuals, pointed out that the tax laws are clearly spelt out, expressing optimism that more people will learn to pay their tax on their own.

Recall that Governor Willie Obiano during an IGR retreat two months ago, gave the Revenue Service desirable monthly target of five billion (N5B).

Then war, as Anambra Government intensifies war on illegal revenue collectors

Following several complaints, war on illegal revenue collection was declared in Anambra state as Commissioner for Transport, Christian Madubuko led ‘anti tout task force’ to arrest illegal revenue agents at various locations in the state including Onitsha and environs.

The war was to stop illegal revenue collection and also to digitalize revenue collection in the state via automated pay direct system. The revenue touts had brought a barrage of blackmailing and disparaging social media attacks on Governor Obiano, his wife, Dr Mrs Ebelechukwu Obiano and some members of the state executive council.

The Chairman/Chief Executive of Anambra State Internal Revenue Service (AIRS) Dr. David Nzekwu explained that effective automation and application of data on revenue sources with the introduction of the Anambra State Security Identification Number (ANSSID), Anambra Business premises certificate, the introduction of Anambra State Revenue Stamp, as well as the commencement of revenue payment through fool-proof Scratch Card and the Anambra road permit for transporters has sanitized revenue collection.

Ozalla Obosi Central Landlords Association protests

Ozalla Obosi Central Landlords Association, went on protest to Awka as officials of AIRS, using OCHA Brigade, the police and officials of the National Security and Civil Defence Corps, NSCDC were harassing them over tax

But the chairman and chief executive of the Anambra State Internal Revenue Service, Dr David Nzekwu, insisting that the landlords are ignorant of tax administration, has promised to increase the tempo.

Leader of the landlords association, Sir Emeka Esotu, regretted that after they had personally invited AIRS to be collecting tax from them in their area in order for the area to be developed, and even after allowing them to use their office, what the landlords were getting in return left much to be desired.

According to Esotu, Nzekwu had been happy over the decision of the landlords to voluntarily subject themselves to be taxed and asked to be allowed to use the office of the association in the area to conduct their operations which was obliged.

But soon, according to Esotu, despite all monies paid to AIRS, they kept increasing it, with one person being taxed for upwards of N2m, N4m and above.

‘When we wanted to know why and went to him, Nzekwu, he there and then taxed me N32m for leading a delegation to protest the anomaly,’ Esotu stated.

He lamented that his members were being intimidated and harassed by the issuance of bench warrant, even to unknown persons.

‘We have come therefore to beg our governor, Obiano, to look into this matter and call the tax people to order before they spoil his image. We supported Obiano in his re-election, but see what we are getting now, he lamented.

‘In one instance, they came in six Hilux vans containing OCHA Brigade, Civil Defence, and police, all armed, and they made arbitrary arrests of people, including passers-by,’ Esotu said.

He alleged that those arrested were summarily tried in court on behalf of the landlords. He said they were told to hire lawyers from the court premises at the cost of Five thousand Naira each. He said those who were granted bail were asked to pay N20, 000 without receipt after which the monies were shared by the government agents.

The landlords who said they were ready to provide evidence of what they paid as tax and what was reflected in their receipts, said they had made moves to meet with Governor Obiano and the Secretary to the State Government, SSG, in order to seek a peaceful solution to the problem and even asked for a period of grace to see if the matter could be amicably solved.

The landlords are asking the government to come and fix roads in their area with monies already collected from the residents as tax, failing which they would stop paying tax. They claimed to have paid over N1B without any visible development in their area.

They also accused the tax officer in the area, one Christy Ike, of fuelling the crisis, alleging that she went after those who did not bribe her, despite those people paying their taxes.

They alleged further that Christy usually took their money to go and pay for them, only to give a receipt of N20, 000, even after some people had paid up to N70, 000. They therefore urged the governor to look into the activities of Christy, whom they equally accused of running a one-man show. They said it was after the landlords discovered her treachery that she resorted to harassing them with security agents.

He said that ordinarily, they paid personal income tax in the range of N2m and N4m, but he was taxed N32m, pointing out that buildings were being taxed, rather than individuals.

To make matters worse, he alleged that the tax people now collected ten percent of rent from landlords, alleging that much of the money collected did not enter into government’s coffers but into private pockets.

They therefore prayed the governor to intervene and not only save them from harassment but fish out those depriving government of revenue.

Reacting however, the Chairman/CEO of Anambra State Internal Revenue Service, AIRS, Dr David Nzekwu, on the allegations against his office, he began by clarifying the functions of the State Revenue Service and the roles of the tax payer.

According to him, the responsibility to pay tax was that of the tax payer, while the function of the State Inland Revenue Service was to administer the revenue laws of the state.

‘We have provided a serious process for people to pay their taxes and other levies to the government. The law expects every individual to present themselves for tax assessment. The tax authorities will use the information provided by the tax payer to assess them. The tax law says that before the 31st of March, 2020, every individual must have done this after which we will compute it and tell you the amount of tax that you are meant to pay. Where an individual is unable to do that, the revenue service steps in and ensures that it is paid. It is the responsibility of the individual to pay up without being coerced. For somebody to say, ‘we are supposed to pay this or that amount’, it is wrong. If you are working for somebody or company, you pay what we call the Pay as You Earn tax (PAYE). When you are doing business, you are supposed to do self-assessment,’ he explained.

He continued, ‘I expected you to have asked them to show you their self-assessment which is the basis of the tax. So, assuming you’re presenting them before me, it will be clear that they have done that and they have basis for saying that they are paying too much or too little. The tax law provided a way that the tax authority can compute tax where the tax payer has failed to do the needful. There is a clause in the law that empowers the tax authorities to do what we call BoJA, (Based on Judgement Assessment) the law empowers the assessment authorities to rely on what is known to determine that.

‘So, in a situation where people have not done their tax returns by not providing the tax authorities with information, the tax authorities can use any basis that is systematic. So, if we don’t have information about the individual, but know that the individual has a five storey building and the rent there is N500, 000 per flat and there are ten flats on that property, we can estimate that the person makes an income of N5m and that is a correct estimation. On the basis of that, we can derive the tax that the individual is supposed to pay. We are also at liberty to add other variables – do their children go to school? Where do they go to school? Etc. Then, we can arrive on the tax that they should pay.

Continue (part 6)….The burden of multiple taxation in Anambra and the relentless war thereto, amidst COVID 19 Pandemic (Part 6)

Cornucopia is a weekly column of Odogwu Emeka Odogwu, PhD. Odogwu, a culture and tradition aficionado and a foodie is a known Journalist, Editor, Media Consultant and famous Blogger, as well as Social Media Entrepreneur, publisher and Conversationalist @ www.odogwublog.com among others.

Phone Number: 08060750240

E-mail : [email protected], [email protected]