PAYE Tax refund: No evidence of shady financial dealings with UI – Oyo Board Internal  Revenue

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By Kayode Tokede

The Chairman of Oyo State Board of Internal Revenue (BIR), Aremo John Adeleke, has debunked reports linking his agency, the State’s Ministry of Finance and officials of the University of Ibadan, with any form of shady deals in the process that led to the refund of the PAYE tax arrears owed the state by the university.

The BIR boss, in a statement made available to journalists, declared that there is no evidence of shady financial dealings between the BIR and the University of Ibadan, or any other federal MDA on the Pay As You Earn tax liability audit process for the periods of 2012 to 2018 and 2019.

According to the BIR boss, there was no case of abuse of office or contravention of the code of conduct for public officers of the Federal Republic of Nigeria.

He also insisted that the tax audit process was transparent, unblemished, and in line with the tax assessment and reconciliation procedure provided by the Personal Income Tax Act 2004 (as amended).

The statement further indicated that the media houses which published the story had been misled by the muddled-up analyses put forward by an unknown anti-corruption group headed by one Bala Ayodele.

Adeleke equally stated that the basis of the agreement between the Federal Government and Oyo State which led to the settlement of the undisputed PAYE tax liability, has nothing to do with any matter relating to the Integrated Personnel Payroll Information System (IPPIS), as according to him, the settlement was consequent upon the Nigerian Governors’ Forum complaint to the Federal Government on the huge unremitted PAYE of federal Ministries, Departments, and Agencies in most states.

The BIR boss warned that the Oyo State Government should not be dragged into the ongoing succession battle in the University of Ibadan, adding that the false and malicious publications were made in bad faith to tarnish the government of Engr. Makinde by elements who are bent on dragging the state into the ongoing battle over the emergence of a new Vice-Chancellor in UI.

He stated that contrary to claims in the publications that the tax audit process allegedly covered a period of 12 years, 2007 to 2018, in contravention of the Personal Income Tax Act 2004, the exercise only covered the period of 2012 to 2017 (six years) in the first instance, and then 2018, which was conducted in 2019 in strict accordance with the relevant section of Personal Income Tax Act, 2004, as amended.

The OYIRS equally debunked the claim that there was a fraudulent deal on the 10 per cent commission to Tax Audit and Monitoring Agents, stating that the governor approved the engagement of the agents in July 2019 for the recoveries of the PAYE tax liabilities and that the 10 per cent commission is to reward all the categories and layers of consultants involved in the recovery process.

Adeleke maintained that contrary to claims in the publications that an initial 2 per cent paid as commission is not part of the 10 per cent approved for such purpose, the 2 per cent paid to the first category of consultants, indeed, formed part of the 10 per cent.

Responding on the case of reward disagreement between Baytem Nigeria Ltd. and the Oyo State Government, Adeleke maintained that the matter is being handled by a court of competent jurisdiction and that the OYIRS would limit its comment until the court process is completed.

He said: “It becomes pertinent to put the records straight as a matter of public interest and give the process flow of the tax audit process that led to the recovery of N3,751,024,427.22 of which N1,875,512,213.61 (50 per cent) has just been recovered from the Office of the Accountant-General of the Federation in two tranches of 25 per cent each. The N1,875,512,213.61 recovered was essentially receipted by the Oyo State Government following the payments.

“It is also pertinent at this juncture to state that: The tax audit exercise, covering the period, 2012 to 2017 (six years), was facilitated and conducted in 2018 in strict accordance with the relevant Section of Personal Income Tax Act, 2004, as amended. A sum of N4,003,020,114.02 was established and later revised to N2,975,027,903.83 after the tax audit reconciliation process that featured exclusion of Withholding Tax liability and expungement of penalty and interest, as demanded by the verification team.

“In 2019, however, following a similar process, a tax audit liability of N775,996,523.39 was also established and resolved. Therefore, the total tax audit liability of N3,751,024,427.22 was resolved and signed by both parties (University of Ibadan and Oyo State Internal Revenue Service). In a nutshell, the tax audit effort, in good faith, was not beyond six years in any of the cases.

“There was no case of false financial claims or abuse of office and the code of conduct for public officers of the Federal Republic of Nigeria was not contravened. We are glad to emphasise that the tax audit process for the period, 2012 to 2018, is transparent in line with the tax assessment and reconciliation procedure as provided by Personal Income Tax Act, 2004, as amended.”

The management of the state’s internal revenue service also debunked allegations of underhand arrangement with the top echelon of the University of Ibadan.