Reps call for documents on N2.6trn capital allowances collected by MTN

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3 years ago

The House of Representatives, on Tuesday, demanded documentary evidence of assets imported by MTN culminating in the total sum of N2.6 trillion capital allowances collected from the Federal Inland Revenue Service (FIRS).

Chairman, House Committee on Public Accounts, Hon. Oluwole Oke disclosed this during the investigative hearing into the audit queries issued by the office of Auditor General of the Federation (oAuGF) on allegations bothering on tax evasion.

Hon Oke who acknowledged the communication sent by the MTN accounting officer which was delivered by a delegation led by MTN’s Head, Public Affairs, Mr Anas Galadima, read the letter.

“We refer to your letter on the above subject matter dated March 24, 2022, inviting us to furnish the House of Representatives Public Account Committee with additional documents on or before Tuesday, March 29, 2022, and appear before the Committee on Wednesday, March 30th, 2022.

“We are currently reviewing the content of the letter and require more time. In this regard, we, therefore, request for your kind consideration to revert to the committee on April, with our position,” the letter read in part.

While expressing concern over the misgivings trailing the investigative hearing on tax evasion, Hon. Oke assured MTN and all the stakeholders that the Committee has no intention to witch-hunt anybody.

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Hon Oke said: “Let me state very clearly why we invited MTN, we invited MTN based on the infractions spotted by the office of the Auditor General of the Federation on non-presentation, evaluation of certificates of acceptance of capital allowances. That is the query issued by the Auditor General of the Federation.

“If you are not a financial person, you may not know or understand the implications. I want to clear this so that there is no ambiguity over the presentation in any medium-media platform. We are investigating tax evasion. We are investigating tax evasion, tax evasion is possible through abuse of fiscal regulations. The committee has not come to conclusion saying that MTN has evaded payment of taxes.

“But what we are investigating is based on the query raised by the Auditor General, and when Federal Ministry of Industry came here with MTN, initially we wrote MTN there was argument whether they should appear or not, or whether they are being investigated or not.

But we can’t shave their head in their absence, the nexus between MTN and the Committee has to do with revenue, taxes which is a civic duty that every taxpayer be it individual or corporate person should meet.

So the ministry of Industry came here, made submission. MTN also made submission, they have claimed total capital allowances from inception to date up to N2.6 trillion.

So the question we are asking the Federal Ministry of Industry is to adduce records, evidence that they inspected their (MTN) assets based on which they issued the certificates, which MTN has taken to FIRS to secure tax rebate.

It is expected of the Industry (Federal Ministry of Industry) to have inspected the assets before they issue the certificates. If the Ministry is in default, then we might be thinking of collusion between the beneficiary of the certificate or the Federal Ministry of Industry which will amount to undermining Nigeria; which will amount to loss of revenue. But the Bible says: ‘Examine all things and hold on to the truth’.

“And like I’ve said earlier, when you first appeared, we are not witch-hunting any person. We speak to law, we speak to facts, we speak to issues. And that’s why I’m making this clarification. So the angle that concerns MTN is that we are trying to extract evidence from you to justify the certificates that you have been issued because you are the beneficiary and we asked if the assets were indeed inspected?

“We also asked for proof, of the dates because you can’t enter MTN premises without records. The assets claimed by MTN can be categorised into two: you have local content and you have foreign content. We have written Nigeria Customs to give us records of the imports, the assets imported by MTN and proof of Duty payment. Because if they (MTN) don’t pay the Duty as expected, it also amount to loss of revenue to the Federation.

“So we also asked Industry (Federal Ministry of Industry) to show proof the evidence of inspecting the assets of MTN. Now they have written to ask for another date, they are not here. So they are to come here and show us, lay before this Parliament evidence, proof that they indeed inspected the assets of MTN before issuing the certificates to the tune of N2.6 trillion.

“So that is the stage we are and MTN has now written a letter that they should be given more time to compile their record. Fair hearing is a constitutional gift, right, so even though the date you are asking for, April 21st is far in our opinion, but honestly for justice, for equity, for fairness, we will accede to your request,” Hon Oke ruled.

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Reps call for documents on N2.6trn capital allowances collected by MTN