Tax evasion: Enugu seals supermarkets

Enugu State Internal Revenue Service has sealed Enugu ShopRite and Spar supermarkets over non-remittances of purchase tax from their malls to the government.

In statement issued by the service on Tuesday morning after an enforcement drive, the affected malls and stores were accused of refusing to remit withholding purchase taxes despite being served several warning notices.

The statement, signed by the spokesperson of the service, Nnamdi Eneh, said ESIRS officials also sealed Roban Stores and Mama Onyinye restaurant, among others, for the same offence.

Eneh said the tax the government is demanding from the malls, stores and businesses is the purchase tax paid by buyers on goods purchased whenever they patronize the outlets.

He quoted the ESIRS HoD of Eateries, Bars, Hotels, and Shopping Malls, Egwuonwu Perpetual, to have said the agency has visited the sealed malls on several occasions to request for the purchase tax, but they failed to remit such.

She added that they have also pleaded with the concerned individuals to be remitting their taxes when due, but “they have been recalcitrant and till now have not done anything concerning these instructions.

She said, “It is worthy of note that after we met with the Roban Store, they displayed our sticker and have complied with remitting their purchase tax to the IRS. On the other hand, ShopRite has frustrated all our efforts to get them to do the needful.

“It is always one story or another; eventually they promised us that before the end of February, they would do something, but we are in March and the ESIRS have not heard from them.”

Egwuonwu stressed that the malls would remain closed until the issues at hand are resolved.

Meanwhile, Eneh explained that the agency had gone on air to enlighten and educate the people on the need to remit their taxes.

He said, “Our public enlightenment program has been ongoing for a while now. We have been sensitizing the people and pleading with them to pay their taxes so as not to fall victim during enforcement, but most of them remained adamant.

“The objective here is not to disrupt anybody’s business, but since pleading did not work, this is the only way to compel them to do what they are supposed to do.”