AUTHORITES of the Obafemi Awolowo University (OAU), Ile-Ife over the weekend described as untrue claims by the Osun State government that the institution was owing to a whopping sum of N1.844 billion of unpaid tax by its workforce.
Rather, the management of the university contended after a thorough examination of the claims of Osun State Internal Revenue Service, “OAU outstanding tax liabilities was a sum of N384 million.
In a press statement endorsed by the Public Relations Officer (PRO) of the institution, Mr Abiodun Olarewaju, which was made available to the Nigerian Tribune in Osogbo, the management of the institution stated that “the university and other stakeholders no doubt are embarrassed by the event of Wednesday, 2nd May, 2018 when Osun State government sealed off the main gates of the university and the institution secretariat due to alleged tax default”.
The statement reads thus, “it has become necessary to react to claims of the state government, misinformation and total falsehoods making the rounds in the community in the aftermath of that unfortunate incident. In particular, the university authorities note the claim that the university was owing N1.84bn of back duty tax and has refused to negotiate with the government as a false, malicious and total misrepresentation of the truth on this matter”.
“Debunking the claims made by the State Internal Revenue Service to the press, the university asserted that past tax liability which represented the sum by which the IRS claimed that the university under-deducted from staff salaries for the period 2015 and 2016 for PAYE has been a subject of negotiations between the university and the state IRS”.
“The university administration vehemently disputed the figure of N1.844 billion submitted by IRS and insisted that if there had been under- deduction at all, only the sum of N287million was the amount by which PAYE was under deducted from staff salaries. Although parties were reconciling their different figures, negotiations could not be concluded on account of the last national strike of the non-teaching staff of universities, which was called off in April this year”.
“It is worthy to note that Osun State government in a letter personally signed by the governor to the President of the Federation had reported the matter. It was then directed to the Presidential Initiative on Continuous Audit in the Office of the Accountant General. Both the Osun State government and the university officers attended the PICA session where the matter was resolved”.
“The Accountant General of the Federation, after examining the claim of the Osun IRS and that of the university, by a letter with reference number INV/0089/844/II dated January 19, 2018, returned the verdict that the university’s outstanding tax liabilities was a sum of N384 million only being under-deducted PAYE from its staff salaries. Parties agreed to this conclusion and that recommendation that this sum could be paid at the monthly instalment of N5 million”.
“It is, therefore, a case of under-deduction and not of non-remittance of tax. This anomaly has since been corrected and the university employees have been paying correct tax rates since January 2017. However, the Vice-Chancellor of the university has assured the university community that the matter would be resolved without delay and the vexed issue would not be allowed by both parties to damage the harmonious relationship between the university and the Osun State government”, the statement concluded.
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