Akwa Ibom State govt may initiate legal action on Total over N25bn tax evasion
Indication emerged on Tuesday that barring any last minute change of strategy, the Akwa Ibom State government may begin class action against oil multinational, Total E&P Nigeria Limited in an effort to recover about N25bn.
The fund is said to be arrears of taxes so far not paid by the company.
According to the managing director of the tax consultant hired by the state government, Rom Flex Networks Limited, Mr. Eyo Bassey, efforts so far made to recover the fund since this year have failed, hence the need to begin to weigh options.
The company argued that Total has been found to be serially negligent on its tax obligations to the state government, stressing that “The Akwa Ibom State IRS has taken a firm decision to embark on a series of legal actions against Total E&P until our calculated tax liabilities are fully settled”.
“We have given them from now a 7-day ultimatum to settle the liabilities or face the dire consequences of its increasing default of the state revenue laws,” he said.
Continuing, Bassy said “TEPNG have turned many well-intended efforts in settlement of the liability by the state government down, and this has offered the state no alternative option but to take a stringent step toward prosecuting the oil giant for its serial tax default to the state government.”
Currently, Total runs three Oil Mining Licence in several fields located in Akwa Ibom State.
It would be recalled that currently, the state is presumed the richest in oil wells following the return of several oil wells to the state in the previous administration after a court ruling.
Some of the wells were transferred from both Rivers and Cross River States.
