FIRS commences audit of Parco Steel company

FIRS says there is no hiding place for tax evaders anymore.

The Federal Inland Revenue Service, FIRS, said on Thursday that it has begun the audit of the tax records of PARCO Steel Enterprises.

The audit is coming after the steel group allegedly failed to honour several notifications and meetings for the revenue agency to look into its operations.

The Head, Communications and Liaison Department of FIRS, Wahab Gbadamosi, said steel firm had over time refused to open its books and provide FIRS with requested documents for the purpose of auditing its tax records.
Prior to the final decision to move in and perform its official function, Mr. Gbadamosi said FIRS officers had over a week ago carried out an enforcement function on the company.

The assignment, he said, involved deployment of some of its latest audit tools to identify tax evaders.

According to him, some of such audit tools was the risk engine tool for identification of tax evaders or non-compliant taxpayers.

Companies flagged by such tools are either subjected to tax audit or tax investigation.

Mr. Gbadamosi said one of such companies flagged off by the FIRS’ risk engine has been Parco Enterprises Nigeria Limited, with a trans-Nigerian reach and associated interests and companies in steel, fertilizer, chemicals, foundries and mines.

He said the decision to audit the company’s tax records was in line with its statutory mandate and the provisions of Sections 58 and 60 of the Companies Income Tax Act (Cap. 21 LFN 2004) and Sections 26 and 27 of the Federal Inland Revenue Service (Establishment) Act 2007 (FIRSEA).

The commencement of the investigation, he said, was effected through a letter dated April 22 to the management of the company requesting for a pre-audit meeting held on April 30.

Further requests to provide accounting and other business records requested of them repeatedly by FIRS, in June were not granted, he said.

Consequently, the FIRS Management, pursuant to the power vested on it by Section 36 of the FIRSEA, approved an enforcement action as a result of the company’s failure to oblige FIRS with requested documents and to open up its books for audit.

The enforcement exercise was carried out by FIRS recently at the office of the company at 1, Commercial Road, Eleganza Plaza, Apapa, Lagos State where documents and accounting records of the company were retrieved for audit purposes.

“Taxpayers are hereby advised to beware as investigation exercise is ongoing and there is no hiding place for tax defaulters,” Mr. Gbadamosi said on Thursday.

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