Connect with us

News

Poor tax collection: Fowler replies Buhari’s query

Published

on

The Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, has responded to a memo from Abba Kyari, the chief of staff to the president, who said there were significant variances between the tax budgeted collections and actual collections for the period 2015 to 2018.

However, Fowler in his response explained that the recession experienced by the Nigerian economy in 2016 as well as lower oil prices affected the revenue collected by the FIRS.

See Fowler’s response: “I refer to your letter dated 8th August, 2019 on the above subject matter and hereby submit a comprehensive variance analysis between budgeted and actual collections for each main tax item for the period 2012-2018 as requested (see appendix 1).

“Your letter stated that actual collections for a 3-year period were significantly worse than what was collected between 2012 and 2014. Total actual collection for the said period wasN14,527.85 trillion, while total actual collection between 2016 to 2018 was N12,656.30 trillion.

The highlight of these collection figures was that during the period 2012 to 2014, out of the N14,527.85 trillion, oil revenue accounted for N8,321.64 trillion or 57.28% while non-oil accounted for N6,206.22 trillion or 42.72% and during the later period of 2016 to 2018, out of the N12,656.30 trillion, oil revenue accounted for N5,145.87 trillionor 40.65% and non-oil revenue accounted N7,510.42 trillion or 59.35%.

FIRS management has control of non-oil revenue collection figures while oil revenue collection figures are subject to more external forces.” He wrote: “The non-oil revenue collection grew by N1,304.20 trillion or 21% within the period 2016 to 2018.

“Kindly note that the total budget collection figure during 2012 to 2014 stood at N12,190.52 trillion compared to N16,771.78 trillion for the period 2016 to 2018, which represent an increase of 37.58%.

“Please note that the variance in the budgeted and actual revenue collection performance of the Service for the period 2016 to 2018 was main attributed to the following reasons:

“1. The low inflow of oil revenues for the period especially Petroleum Profit Tax (PPT) was due to fall in price of crude oil and reduction of crude oil production. Notwithstanding government efforts to diversify the economy, oil revenues remains (remain) an important component of total revenues accruable to the Federation. The price of crude oil fell from an average of $113.72, $110.98 and $100.40 per barrel in 2012, 2013 and 2014 to $ 52.65, $43.80 and $54.08 per barrel in 2015, 2016 and 2017. There was also a reduction in crude oil production from 2.31mbpd, 2.18mbpd and 2.20mbpd in 2012, 2013 and 2014 to 2.12mbpd, 1.81mbpd and 1.88mbpd in 2015, 2016 and 2017 respectively.

“2. The Nigerian economy also went into recession in the second quarter of 2016 which slowed down general economic activities. Tax revenue collection (CIT and VAT) being a function of economic activities were negatively affected but actual collection of the above two taxes were still higher in 2016 to 2018 than in 2012 to 2014. During the years 2012, 2013 and 2014, GDP grew by 4.3%, 5.4% and 6.3% while in 2015, 2016 and 2017 there was a decline in growth to 2.7%, -1.6% and 1.9% respectively. The tax revenue grew as the economy recovered in the second quarter of 2017.

“3. It is worthy of note that strategies and initiatives adopted in collection of VAT during the period 2015-2017 led to approximately 40% increase over 2012-2014 collections. In 2014 the VAT collected was N802billion, compared to N1.1 trillion in 2018. This increase is attributable to various initiatives such as ICT innovations, continuous taxpayer education, taxpayer enlightenment, etc embarked upon by the Service.

“4. Furthermore, it is pertinent to note that when this administration came on board in August 2015, the target the target for the two major non-oil taxes were increased by 52% for VAT and 45% for CIT. Notwithstanding the increase, FIRS has in line with the Federal government’s revenue base diversification strategy has grown the non-oil tax collection by over N1.304 trillion (21%) when the total non-oil tax collection for 2016-2018 is compared to that of 2012-2014.

“I am confident that our current strategies and initiatives will improve revenue collection and meet the expectations of government.

“Please accept the assurance of my highest regards.”

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

News

Ned Nwoko Becomes Patron of Association Of Ex-Local Government Chairmen Of Nigeria

Published

on


Association of Ex-Local Government Chairmen Of Nigeria (ASELGON) is set to honour Nigerian popular politician, successful businessman and international lawyer, Hon. (Dr) Ned Nwoko as Patron of the body.

The investiture will be done at the billionaire politician’s palatial country home in Idumuje Ugboko, Delta State on Saturday, 23rd November 2019 and it would be graced by top politicians and eminent personalities from across the country.
ASELGON is the national body of elected former local government in Nigeria with membership across the 774 local governments in the country with the core goal of deepening and entrenching globally acceptable democratic ethos.
They body said in a statement signed by their National President, Albert Ashipa that it was an obvious fact that Nwoko had left indelible footprints in the sand of grassroots governance and development for his efforts to get Paris Club refund for the 774 local governments which they said till today many were unaware of his singular role. 
The president of the association further revealed in the statement that,”In view of this, the members of our association have unanimously, with excitement decided to honour you for your past achievements. 

“We are delighted to inform you that within the shortest time of our existence, the association has recorded  modest achievements which include registration with Corporate Affairs Commission (CAC), inauguration of National Officers as well as establishment of strong footing nationwide with aggressive membership drive and existence of State Executives and provision of office accommodation. 
“Therefore, we consider you as an important and strategic stakeholder in nation’s political renaissance, hence the decision to honour you as our PATRON,” the statement read.

Continue Reading

Crime

Revealed: How Jailed Fraudster Masterminded $1 Million Internet Scam From Prison

Published

on

The Economic and Financial Crimes Commission, EFCC, has revealed how a jailed fraudster, Hope Olusegun Aroke masterminded an internet scam worth $1 million from prison.

Aroke is a convicted internet scammer, who is currently serving 24 years jail term.

The Lagos Zonal office of the commission revealed recently that it discovered that Aroke, a convicted internet fraudster currently serving a 24 years jail term was still in active communication with other high valued targets.

The EFCC said in a statement that the high valued targets were currently being investigated by the Commission for various offences relating to computer fraud and money laundering.

“Investigation revealed that he masterminded the commission of internet scam worth over $1,000,000 (One million Dollars) whilst serving his jail term,” the EFCC said.

Aroke was alleged to have pulled the heist right from prison using a network of accomplices, some of them targets of fraud and money laundering investigation.

The lid on his latest fraud exploits from the bowels of the Maximum Correctional Centre was reportedly blown following intelligence received by the EFCC.

What surprised the EFCC was how it was possible for the convict to continue to ply his ignoble trade of Internet fraud from prison.

Preliminary investigation revealed that the convict, against established standard practice, had access to internet and mobile phone in the Correctional Centre where he is supposed to be serving his jail term.

It was more surprising that Aroke got himself admitted to the Nigeria Police Hospital, Falomo, Lagos for an undisclosed ailment and from the hospital, he would move out to lodge in hotels, meet with his wife and two children and attend other social functions.

The circumstance of his admission into the hospital and those who aided his movement from the hospital to hotels and other social engagements, are already being investigated by the EFCC.

Investigations revealed that Aroke used a fictitious name, Akinwunmi Sorinmade, to open two accounts with First Bank Plc and Guaranty Trust Bank Plc.

He also reportedly bought a property at Fountain Spring Estate, Lekki Lagos in 2018 for N22 million and a Lexus RX 350 2018 model registered in his wife’s name, Maria Jennifer Aroke.

The convict was also said to be in possession of his wife’s bank account token in prison, which he used to freely transfer funds.

Further investigation revealed that, while his trial was ongoing in 2015, Aroke bought a four bedroom duplex at Plot 12, Deji Fadoju Street, Megamounds Estate Lekki County Homes , Lekki for N48 million.

Aroke was one of two Malaysia-based Nigerian undergraduate fraudsters arrested by the EFCC in the closing weeks of 2012 at the 1004 Housing Estate, Victoria Island, Lagos following a tip-off.

The indigene of Okene, Kogi State had claimed to be a student of Computer Science at the Kuala Lumpur Metropolitan University, Malaysia. But the Commission’s investigation fingered him as the arrow head of an intricate web of internet fraud scheme that traverse two continents.

When Aroke was arrested, a search conducted by EFCC operatives on his apartment led to the recovery of several items such as laptops, iPad, traveling documents, cheque books, flash drives, internet modem, and three exotic cars – a Mercedes Benz Jeep, One 4Matic Mercedes Benz Car and a Range Rover Sport SUV.

He was eventually convicted by Justice Lateefa Okunnu of a Lagos State High Court on two counts of obtaining money by false pretence, cheque cloning, wire transfer and forgery.

He was sentenced to 12 years imprisonment on each of the two counts.

Continue Reading

News

If You Divorce Your Wife, She Has Right To Take Over Your House, Oyo Court Tells Man

Published

on

Once a woman has children for her husband and had married him before a house was built, she has the right to live in the house with her children even after divorce under the provisions of the Married Woman Property Act 1882, a court held recently in Ibadan, Oyo State.

The belief that women have no rights even under the law has been proved to be an erroneous one, and it was argued that this is being propounded by those ignorant of the rights provided under the law, the court said in a landmark judgement.

This provisions formed the basis of the pronouncement of the Chief Judge of Oyo State, Justice Munta Abimbola, recently in a property suit between Toyin Arajulu, formerly known as Mrs Toyin James and her estranged husband, Mr James Monday.

The court held that “a husband who marries a wife and builds a house during the pendency of the marriage stands the risk of losing that house if he later divorces the woman who had children for him unless such woman, of her own volition, leaves the matrimonial home.”

While ruling on the matter, Justice Abimbola emphasised what is known in law as the “palm tree justice,” which indicated that it does not matter in whose name the property stands or who pays what (on the property) and in what proportion as determination of such matters transcends all rights, legal or even equitable, but simply what order is fair and just in the circumstances of the case, citing the case of Home Vs Home (1962) 1 WLR 1124 at 1128.S 17 Married Woman Property Act 1882, which is a statute of general application.

Toyin Arajulu had filed the suit against her ex-husband, Monday James, who she married under Native Law and Customs in 1997 and for whom she had four children.

She claimed that while she was married to him, they had put resources together and built two flats of three bedrooms at Ayedun in Akure, Ondo State and procured a plot of land at No 7, Fadana Biala Estate, Olodo, Ibadan, where they built a three-bedroom flat and a storey building which is still under construction before their divorce in July 2014.

She averred that before the divorce, her husband had moved out of their matrimonial home in Olodo, but only came constantly to try to forcibly eject her and the children, usually accompanied by thugs who attacked her and her children.

She added that on August 15, 2014, one of her children, Bidemi James, was wounded in one of the episodes of attempted violent eviction and the sum of N530,000 from her business taken by her ex-husband and his accomplices.

She claimed that he had concluded plans to sell off the joint property without her consent and had continued to victimise her and the children, asking the court for a declaration that the property is jointly owned by the two of them and an order that the landed property with the three-bedroom flat and uncompleted storey building be sold and proceeds divided equally between them and an order of perpetual injunction restraining James from harassing her and the children.

In his counter claim and defence, the ex-husband stated that when he bought and constructed the Akure property, his wife was a full housewife and had no contribution to the project, adding that the situation was the same for the Ibadan property as his wife only signed as a witness as she had no job and only depended on what he gave her to take care of the children when he travelled out of the country.

According to him, she was only trying to fraudulently take over his property, adding that her claims were vexatious, gold digging and an abuse of court process.

He also asked the court to declare that the receipts of purchase his ex-wife presented were forged and that she should vacate possession of the property which she had refused to give up despite service of statutory seven days owner’s intention to recover possession and perpetual injunction restraining her from occupying the building.

Justice Abimbola, while ruling on the case, held that the landed property at No 7, Fadana Biala Estate, Olodo, Ibadan, together with the three-bedroom flat and uncompleted storey building is jointly owned by the two.

On the second relief that both buildings be sold as requested by Toyin, Justice Abimbola held that, “I will not give such orders in respect of the two buildings. Particularly, Section 17 Married Women Law of Oyo state Cap 83, Laws of Oyo state 2000 gives a court the discretion as it thinks fit on the issues of title of possession to property.

“Section 18 also enjoins the court to treat such property as a joint property if the issue has to do with the maintenance of a matrimonial home. My order to this effect is that the completed three-bedroom flat on the land be retained as the matrimonial property and the four children are entitled as beneficial owners by way of a resulting trust created for them by their parents. The mother, as long as she remains unmarried, is directed to be in possession undisturbed in order to take care of her children.

“The uncompleted storey building is ordered to be sold by both parties and the proceeds divided in equal share. The half share shall go to the wife for the maintenance of the children. A divorced wife has no business being maintained,” Justice Abimbola held.

The court also restrained James from harassing Toyin any further or disturbing the quiet possession of the property by her and the children, holding that, “the rationale is that a husband who marries a wife and builds a house during the pendency of the marriage stands the risk of losing that house if he later divorces the woman who had children for him unless such woman, of her own volition, leaves the matrimonial home. Also, a divorced woman is not entitled to any maintenance allowance but maintenance of the children by way of settlement.”

Continue Reading

Trending