Edo seals nine Chinese-owned firms over alleged ₦8.98bn tax debt

The Edo State Internal Revenue Service has sealed the premises of nine companies, predominantly owned by Chinese nationals, over alleged unpaid tax liabilities totalling ₦8.982 billion.

The enforcement action affected companies operating in Utesi Community, Ikpoba-Okha Local Government Area of Edo State.

The EIRS said the affected firms allegedly failed to comply with statutory tax obligations, including registering employees for Pay-As-You-Earn tax, filing annual employers’ tax returns and deducting and remitting PAYE taxes.

The agency’s Head of Corporate Communications and Taxpayers Enlightenment Service, Courage Eboigbe, said the companies had been formally notified of their respective tax liabilities before the enforcement action.

According to the EIRS, repeated reminders and demands for compliance did not result in the settlement of the outstanding liabilities, prompting the agency to obtain court orders to seal the companies’ operational premises.

The affected companies include Rongtai Plastic Company Limited, Rongtai Hardware Limited, Rongtai Energy Technology Company Limited, Rongtai Building Materials Company Limited and Rongtai Food Company Limited.

Others are Five Star Wire and Cable Company, Xin Guo Technology Nigeria Limited, Changrong Wood Nigeria Limited and Shunda Nigeria Enterprise.

Eboigbe said the enforcement orders would remain in effect until the companies settled their outstanding tax obligations.

“The enforcement orders will remain in effect, and the seals will only be removed upon settlement of all outstanding tax liabilities by the defaulting companies,” he said.

The action is part of the revenue service’s enforcement of tax compliance among businesses operating in the state.

The ₦8.982 billion figure represents the tax liabilities alleged by the EIRS. The companies have not publicly responded to the allegations in the reports reviewed as of the time of publication.