A Revenue Court in the Warri Judicial Division has ordered Nigitrade International Company to pay ₦1,443,309,286.88 in unpaid taxes to the Delta State Internal Revenue Service (DSIRS) for the period between 2015 and 2020.
In his ruling on Suit No. RCW/01/23, delivered on Monday, Hon. Justice Champion Umukoro found that the company repeatedly failed to remit staff personal income taxes and other statutory payments to the state government, despite receiving multiple notices.
Justice Umukoro stated that the company’s refusal to pay these taxes violated Sections 54, 57, 59, and 78 of the Personal Income Tax Act (PITA) as well as Section 44(1) of the Delta State Internal Revenue Service Law.
“The defendant was properly served with several notices to pay their staff personal income taxes and other levies but neglected and refused to make the payments to the Delta State Internal Revenue Service,” the court emphasized.
Nigitrade International Company had initially filed a preliminary objection, claiming that Chevron Nigeria Limited was responsible for handling its employees’ taxes since Nigitrade only supplied labor for Chevron’s Escravos Gas-to-Liquids (EGTL) project.
However, the court rejected this objection after the DSIRS lawyer presented a document from Chevron confirming that Nigitrade is an independent contractor and fully responsible for its staff’s salaries and tax obligations.
As a result, Justice Umukoro dismissed the objection and ruled in favor of the Delta State Internal Revenue Service, ordering Nigitrade to pay ₦1,443,309,286.88 in unpaid PAYE, withholding taxes, and development levies owed to the state.
In response to the judgment, Hon. Solomon Igrakpata, Executive Chairman of the Delta State Internal Revenue Service, praised the ruling as a major win for tax justice in Delta State, highlighting that the recovered funds would be used to support essential infrastructure projects for the community.
He emphasized that the agency will maintain its strong efforts to fight tax evasion and ensure compliance from both individuals and businesses.
“This judgment strengthens our resolve to make sure every taxpayer in Delta State meets their civic duties. We encourage those who are behind on their taxes to come forward and settle their accounts voluntarily to avoid steep penalties and legal action,” Igrakpata said.
The ruling is viewed as a significant step forward for the state’s ongoing reforms to increase internally generated revenue and improve transparency in tax management.
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