The Oyo State Board of Internal Revenue has explained why it sealed offices of the Ibadan Electricity Distribution Company (IBEDC).

The revenue board stated that the action was taken as a result of tax default in excess of N400 million.

Chief Operating Officer of IBEDC, Mr. John Ayodele, had earlier said the cutting off of electricity supply to the State Secretariat, which houses the Governor’s Office, over N450 million debt owed by the Oyo State government led to the sealing of their offices.

However, the Board, in a statement issued by its chairman, Mr. Femi Awakan, and made available to The Star, explained its position.

Awakan said that the state government duly obtained a distraining order of the Oyo State High Court before sealing some of the offices of the distribution company.

Some of the offices affected in Wednesday’s action include the company’s headquarters on Ring Road, Ibadan and its offices at Mobil, off Ring Road, Dugbe, Ojoo/Iwo Road office as well as Monatan, all in Ibadan.

He said the state government had applied for the warrant to enforce the payment through suit No. M/122/2022, which has the Governor of Oyo State, the Attorney-General and Commissioner for Justice and the Board of Internal Revenue Service of Oyo State as applicants, while IBEDC is the respondent.

The Board said it filed an application before Justice O.M Olagunju, seeking the issuance of a warrant authorising its officers to “distrain upon any land, premises or places of which the respondent (IBEDC) is the owner.”

“The court order is to enable the state government to enforce the payment of arrears of taxes to the tune of N400,546,111,41k, being taxes accumulated by the IBEDC in respect of Harmonised bills, Infrastructure bills, Tax Audit bills and Signage bills, and which the company has failed to pay in the last two years,” Awakan said.

A breakdown of the bills shows: Harmonised Bill- N139.440,000; Infrastructure Bills-N122.590,000; Tax Audit Bills- N116,516,111.41 and Signage Bills- N22,000,000.00

“It is to be noted that the IBEDC has a statutory obligation to deduct and remit revenue bills to the government of Oyo State through the Board of Internal Revenue.

“It is also to be noted that the distribution company failed and neglected to remit any such personal income tax of its employees within the period under review and that the Board of Internal Revenue several times served requisite demand notices calling attention to the company’s tax liabilities/obligations,” the statement said.

Relying on section 45 of the Revenue Law of Oyo State, the presiding judge, Justice O.M Olagunju, issued the warrant and affirmed that:

“Accordingly, I hereby issue a warrant in favour of the officers of the applicant (Oyo State Government) named in the  schedule to this application authorising one or all of the named officers to distrain upon any land, premises or places of which the respondent is the owner particularly the respondents head office at Ring Road and Dugbe Ibadan for the purpose of enforcing payment of taxes in the sum of N226,756,000.41k only, representing its outstanding tax liability for the year 2021 of assessment which has become final and conclusive.”

TheStar