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Osun, Delta Fine Google, Meta $350m Each for Alleged Tax Evasion

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Osun and Delta states’ tax authorities have fined Google Nigeria and Meta Platforms Inc. $150 million and $200 million, respectively, for alleged non-remittance of withholding tax.

Osun, Delta Fine Google, Meta $350m Each for Alleged Tax Evasion

The fine is specifically for the withholding tax (WHT) allegedly deducted from content creators and entertainers in the two states from 2020 till date.

This is coming  just days after the federal government fined Meta Platforms Inc., parent company of Facebook, Instagram, and WhatsApp, the sum of $220m for an unauthorised appropriation of personal data without user consent, discriminatory practices against Nigerian users, and the abuse of Meta’s dominant market position.

The new fines by Osun and Delta States Internal Revenue Service (IRS) added new twists.

The fines were contained in separate letters signed by Sola Adewunmi and Solomon Ighrakpata, Osun and Delta States Internal Revenue Service (IRS) executive chairmen, respectively.

The letters, also signed by Ademola Odetunde, chief operating officer of LafriquePromedia Ltd., the states’ revenue collection agent, were made available to journalists in Lagos.

According to Mr Odetunde, LafriquePromedia is also consulting for the IRS of Plateau, which is also facing the same challenge and coming up with similar demand.

He said the companies were issued a 14-day notice of compliance, effective July 12 and July 19, respectively, from the affected states.

Mr Odetunde said the companies, upon receipt of those letters, would face the consequences of non-compliance.

He said the states were demanding for the payment of the withholding tax deducted, but not remitted by the companies, at the rate of five per cent to the states.

Mr Odetunde said the revenue or payment was from digital services provided to content creators and practitioners in the entertainment and creative sector within Delta and Osun.

”By these demands and notices for compliance, we hereby advise your companies to comply with our demands through our revenue agent within the next 14 days.

”We want to bring your attention to the fact that the concept of WHT is a form of advance payment of income tax, which is deductable at the source of payment made for certain commercial transactions by Nigerian customers.

”Same must be remitted to the appropriate tax authorities – Federal, by corporate bodies, or State Internal Revenue Service, by individual, enterprises and partnership within 21 days after the end of the month the transaction was made,” he said.

According to him, the companies, as operators of social media platforms within the Osun and Delta states’ digital landscape, are mandated to withhold tax in line with the provisions of the extant law.

He said the procedure also included services provided to content creators and online practitioners within Osun and Delta and remittances of the tax to the relevant tax authorities through its designated agent.

Mr Odetunde said: ”We observed that over the years, your companies willfully refused, failed and neglected to remit the withheld tax to the local tax authority for Osun and Delta states, Nigeria.

”The law permits us to prosecute the offending non-resident companies and take necessary steps to recover the WHT.”

Mr Odetunde warned the companies to note that the penalty for non-compliance for companies, including non-resident companies, upon conviction, included a fine of 10 per cent of the amount not deducted or deducted but not remitted.

He said: ”This shall be added thereto, plus interest at the prevailing commercial rate presently at 21 per cent, while the officers of a non-compliant corporate taxpayer may be imprisoned or fined or both, if found guilty of tax crime.”

According to Mr Odetunde, the revenue agent has been writing to the companies since October 13, 2023, regarding the matter, to no avail.


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NIMASA, BOI Partner to Grow Capacity In Maritime Sector

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Nigerian Maritime Administration and Safety Agency (NIMASA) and the Bank of Industry (BOI) have initiated discussions on strategies for capacity building in the maritime industry.

Dr. Dayo Mobereola, Director General of NIMASA, represented by the Executive Director of Maritime Labour and Cabotage Services, Mr. Jibril Abba disclosed this during a visit by the management of the bank led by Executive Director of Large Enterprises, Mrs. Ifeoma Uz’Okpala.

Osagie Edward, the agency’s Head of Public Relations, said in a statement that in addition to safety, security and maritime labour, the agency’s mandate encompasses capacity development aimed at growing the sector.

Also, Mobereola explained that NIMASA’s commitment to collaboration was a vital tool for achieving its mandate.

He said: “The aim is to actualise the vision of the Federal Government to reposition the maritime sector, especially with the creation of the Ministry of Marine and Blue Economy.”

Also, Uz’Okpala affirmed the bank’s readiness to support NIMASA, emphasising the importance of collaboration in implementing a robust capacity-building initiative that would contribute to economic growth in Nigeria.

She noted: “Bank of Industry Limited is Nigeria’s oldest and largest Development Finance Institution (DFI) currently in operation. It is owned by the Ministry of Finance Incorporated (MOFI) Nigeria (94.80 per cent), the Central Bank of Nigeria (CBN) (5.19 per cent) and private shareholders (0.01 per cent).


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FG VAT Collection Up 9.11% to N1.56tn

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The federal government’s aggregate receipt of the Value Added Tax (VAT) in Q2 2024, stood at N1.56 trillion, indicating a growth rate of 9.11 per cent on a quarter-on-quarter (QoQ) basis from N1.43 trillion in Q1 2024.

The figure represents a 99.82 per cent increase compared to the N781.35 billion collected in the corresponding quarter of last year.

According to numbers released by the Nigeria Bureau of Statistics (NBS), On a quarter-on-quarter basis, the Q2 VAT rose by 9.11 per cent from N1.43 trillion in Q1 2024.

The data showed that local VAT payments recorded were N792.58 billion, foreign VAT payments stood at N395.74 billion, while import VAT contributed N372.95 billion in Q2 2024.

Analysis of the NBS numbers showed that human health and social work activities recorded the highest growth rate with 98.44 per cent, followed by agriculture, forestry and fishing with 70.26 per cent, and water supply, sewerage, waste management and remediation activities with 59.75 per cent.

Contrarily, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –46.84 per cent, followed by real estate activities with –42.59 per cent.

In terms of sectoral contributions, the top three largest shares in Q2 2024 were manufacturing with 11.78 per cent; information and communication with 9.02 per cent; and mining and quarrying with 8.79 per cent.

“Nevertheless, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00 percent, followed by activities of extraterritorial organisations and bodies with 0.01 per cent; and water supply, sewerage, waste management and remediation activities with and Real Estate Services 0.04 per cent each.

“However, on a year-on-year basis, VAT collections in Q2 2024 increased by 99.82 per cent from Q2 2023,” NBS stated.


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GOCOP Partners NCDMB, EMADEB, Dangote, NCAA, Setraco, UBA, NCC, Others for 2024 Conference

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Partners for the eighth annual conference of the Guild of Corporate Online Publishers (GOCOP) have begun to emerge with the Nigerian Content Development and Monitoring Board (NCDMB), Emadeb Group and Dangote Group leading the train of partners for the event slated for Thursday, October 3, 2024 at the Reverton Hotel, GRA Lokoja, Kogi State.

The chairman of the 2024 Conference Planning Committee, Danlami Nmodu, mni, also listed other partners to include Nigeria Civil Aviation Authority (NCAA), Setraco Nigeria Limited, United Bank for Africa (UBA) and Nigerian Communications Commission (NCC), according to a statement by
GOCOP Publicity Secretary, Sir Remmy Nweke.

Nmodu was also quoted as saying that the eighth conference would center on the theme: “Nigeria: Tackling Insecurity, Power Deficit, and Transitioning to Digital Economy” and will hold on Thursday, October 3, 2024 from 10am. The keynote will be delivered by former governor of Cross River State, Senator Liyle Imoke.

Read Also: Imoke, Buratai, Maida, others to headline GOCOP 2024 conference in Kogi

Additional partners for 2024, he said, comprised the Nigerian Safety Investigation Bureau, Access Bank plc, Zenith Bank plc, First City Monument Bank (FCMB), Fidelity Bank plc, Sovereign Trust Insurance Plc (STI), Nigerians in Diaspora Commission (NIDCOM) and National Film and Video Censors Board (NFVCB).

A major highlight of this year’s conference, Nmodu said, is a business luncheon with GOCOP partners on Wednesday, 2 October, at the same venue, while the conference itself would hold on Thursday, October 3.

Nmodu noted that the 8th edition would be chaired by former Nigeria’s Ambassador to Spain, Alhaji Yusuf Mamman, with the former Nigerian Chief of Army Staff, Lt-General Tukur Yusuf Buratai (Retd) and the Executive Vice Chairman, Nigerian Communications Commission (NCC), Dr. Aminu Maida as Guest Speakers, while a Professor of Political Science at the Federal University Lokoja, Prof. Rotimi Ajayi and an edutainment communicator and veteran broadcaster, Ms Debrah M. Ogazuma are panellists.

Nmodu recalled that GOCOP conference 2023 was chaired by the JAMB Registrar and Chief Executive, Prof Ishaq Olarenwaju Oloyede, while the first Nigerian Professor of Capital Market, Prof. Uchenna Joseph Uwaleke was the keynote speaker.

Previous speakers at the annual conference consisted of Rev. Matthew Hassan Kukah, the Bishop of the Catholic Diocese of Sokoto who delivered the 2019 lecture on “Economy, Security and National Development: The Way Forward.”

In 2021, Mr. Boss Mustapha, Secretary to the Government of the Federation, keynoted the Conference in his capacity as Chairman of the Presidential Task Force on Covid-19. He spoke on: “Post Covid-19 Pandemic: Recovery and Reconstruction in Nigeria.”
In 2022, Professor Mahmood Yakubu, Chairman, Independent National Electoral Commission, delivered the keynote entitled “2023 Elections: Managing the Process for Credible Outcome.”

GOCOP was established to ensure that online publishers uphold the tenets of journalism.

Membership of the Guild is a constellation of editors and senior journalists who, having distinguished themselves in their various positions in the print and electronic media, ventured into online publishing which is both the present and future of journalism globally.

The Guild has over 104 corporate publishers as members.


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