The Delta State Government on Tuesday at Effurun, near Warri gave a 14-day ultimatum to companies which have defaulted in paying their tax to immediately pay up.
The Chairman, Delta Board of Internal Revenue, Joel-Onowakpo Thomas, who gave the ultimatum at a stakeholders meeting, said the companies were owing the state over N20 billion.
Thomas said: “They either pay up or face the wrath of the law.
“The failure of the indebted companies to meet their tax responsibilities to the state can result in the closure of their business premises by relevant government agencies.”
Thomas said an audit carried out by government in 2012 indicated that the companies had defaulted in remitting their taxes, saying the affected firms would be named soon.
He added: “It is on a very sad note that I have been compelled to invite you for this meeting because some of you have not lived up to our expectations.
“Sometime ago, we had a stakeholders meeting at which tax professionals were introduced to advice you on tax issues.
“The idea was also to engender voluntary compliance and promote understanding between us.
“Sadly, many companies have failed in that regard.
“I wish to say that the state government is being owed over N20 billion by companies operating in Delta.
“This situation has become unacceptable in all ramifications and it is against government’s desire to rapidly develop the critical infrastructure to support its vision of Delta beyond oil.”
The DBIR chairman said prompt remittance of taxes would enable government to provide adequate infrastructure to people of the state and by implication improve their standard of living.
He said: “The board will no longer treat issue of tax default in the state with levity.
“With effect from September 25, the board will embark on a mass enforcement of tax laws.”
A cross-section of the stakeholders commended the board for inviting them to the meeting, saying it was an indication of government’s readiness to carry them along.
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