The Benue State Government has recently taken a significant step in enforcing tax compliance by sealing off Oracle Business Limited and its subsidiaries over claims of tax evasion. This action comes after an alleged failure of the company to pay taxes amounting to N130 million, which had accumulated over the last five years. The enforcement was carried out under the directive of the Benue State Board of Internal Revenue as part of a broader crackdown on businesses that are defaulting in their tax obligations.
Speaking to journalists during the enforcement exercise, Sunday Odagba, the acting Executive Chairman of the Benue State Board of Internal Revenue, clarified the state’s position on the matter. He emphasized that this initiative is part of the government’s effort to recover tax revenue from all corporate entities that are owing substantial sums to the state government. According to him, the sealing of Oracle Business Limited was a necessary step after multiple attempts to resolve the issue through reconciliation and dialogue failed.
Odagba also addressed the allegations of political persecution raised by Oracle Business Limited. The company’s management had claimed that the state’s tax demand was a ploy to shut down the business, which they argued was politically motivated due to the company’s links to former Governor Samuel Ortom. Oracle Business Limited further contended that the tax liability in question had been reduced to N38 million after a review and that they had made the necessary payment. Despite this, the company’s business premises were still sealed off.
In response to these accusations, state tax officials outlined the company’s failure to meet its tax obligations for a substantial period. According to the Benue State Board of Internal Revenue, Oracle Business Limited had not paid its taxes for five consecutive years, resulting in a significant debt of over N130 million. The officials explained that numerous invitations were extended to the company to resolve the issue amicably, but Oracle Business Limited allegedly failed to comply or engage in any reconciliation process. As a result, the government was left with no option but to take enforcement actions.
The case of Oracle Business Limited raises broader concerns about tax compliance among businesses in Benue State and across Nigeria. The government has been tightening its grip on tax defaulters, particularly as it seeks to increase internally generated revenue to fund public projects and services. Many states in Nigeria face challenges with businesses and individuals failing to meet their tax obligations, which in turn hampers the government’s ability to execute its developmental agendas.
In this case, Oracle Business Limited has become a focal point for the state’s ongoing efforts to recover lost revenue. While the company has claimed political victimization due to its affiliation with the former governor, the state’s tax authorities have maintained that their actions are purely a result of tax non-compliance and have nothing to do with politics. The company’s failure to settle its tax liabilities and to respond to numerous reconciliation efforts has, according to the Board of Internal Revenue, justified the sealing of the premises.
As the state continues to ramp up its tax enforcement strategies, this incident sends a strong message to other defaulting businesses. The government remains firm in its resolve to recover outstanding taxes, irrespective of the political affiliations or social status of the individuals involved. Oracle Business Limited, for its part, has been encouraged to take the necessary steps to resolve its tax disputes and settle its obligations in full to avoid further penalties or legal consequences.
This situation highlights the importance of proper tax management for businesses operating in Nigeria, where tax laws are becoming increasingly enforced. For companies like Oracle Business Limited, adhering to tax regulations and engaging promptly in reconciliation processes when disputes arise can prevent such drastic measures as business closures and legal battles. As this case unfolds, it is yet to be seen whether the company will successfully navigate the challenges posed by the state’s enforcement actions or if more serious repercussions will follow if the dispute remains unresolved.
