This is to let the general public and Abians in
particular, to know that the sealing of the Enugu Electricity Distribution
Company (EEDC) formerly Power Holding Company of Nigeria (PHCN) offices in the
state was a judicial matter caused by the refusal of the EEDC to remit all Pay
As You Earn (PAYE) taxes deducted from its workers salaries.
The Abia State Board of Internal Revenue BIR, whose
statutory responsibility it is to handle taxation matters in the state audited
the EEDC and from 2006 till date the EEDC has a PAYE Tax liability of Six
Hundred and Twenty Three Million Naira ( 623 Million) which has
been duly communicated to all relevant authorities including the Federal
Ministry of power. However, the judgment debt from 2006 to 2011 as allowed by
the extant laws and established a tax liability is four hundred and seventeen
million, (N417million) naira against the EEDC and it was for
this that demand notices were served on the company which it refused to pay.
The company was taken to court by the State Board
of Internal Revenue BIR, as has been the case with other organizations. The
High Court granted the Board an Order to seal their offices in order to recover
the said amount.
On the 23rd of November 2013, the
BIR attempted to seal the EEDC (PHCN) then, but it used the military and the
police to resist the sealing.
However, the company came to a meeting with the BIR
on the 5thof December 2013 and it was resolved that the Board should
grant the EEDC two weeks from the 5th of December 2013 to
enable it to liaise with the Nigeria Electricity Liability Management Company
for the payment of the outstanding liability.
The EEDC further asked for the 20th January
2014 as the date for the payment of the liability failure which the law will
take its course, but, in an apparent display of bad faith, the EEDC went behind
to file a suit in the High Court for Stay of Execution Order.
The Board of Internal Revenue followed the EEDC to
court and it was not until the 2nd of October 2014, when the
court rejected the request of EEDC for a stay of execution of the earlier order
that BIR moved to enforce the court order, hence the sealing of the EEDC on the
9th of October 2014.
The Abia State Government, wishes to state that it
has no hand in this obviously legal matter as the BIR is a statutory body with
extant responsibilities and rights. We would rather advice the EEDC to act as
other responsible corporate citizen and pay its taxes or alternatively act in
good faith and approach the BIR for amicable resolution of the issue in the
interest of our citizens.
Abia citizens will bear witness that this is not
the first time an organization was sealed by the BIR for non remittance of PAYE
taxes and this shall not be the last.
However, based on solemn promises made by EEDC
Board and management His Excellency, Governor T.A. Orji has magnanimously waded
in and directed that BIR suspend the sealing of EEDC premises in the state to
avoid any hardship such legal tussle may cause Abia citizens and other
residents. The Enugu Electricity Distribution Company (EEDC) is advised
to reciprocate this gesture by expeditiously pay-off its outstanding debt with
the BIR as promised to avoid further embarrassment.
Dr. Eze Chikamnayo
Commissioner for Information & Strategy,
Abia State
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