The Federal Government has initiated legal action against Well Property Development Company Limited, accusing it of tax evasion. The lawsuit, filed by the Federal Inland Revenue Service (FIRS) before the Abuja Federal High Court under suit number FHC/ABJ/CR/293/2024, lists the Federal Republic of Nigeria as the complainant and names nine individuals alongside the company as defendants.
The charges against Well Property Development Company Limited include six counts related to financial misconduct. Among these allegations are false declarations of earnings while conducting taxable services. Specifically, the company is accused of failing to submit accurate and complete income tax returns as required under Section 55 of the Companies Income Tax Act. Additionally, the FIRS alleges that the firm provided false information regarding its income, a violation of Section 25 of the Value Added Tax Act of 1993.
Further counts in the lawsuit pertain to the falsification of tax returns spanning from 2019 to 2022 and failure to deduct and remit appropriate taxes, offenses punishable under Section 40 of the FIRS Establishment Act 2007.
As of now, a hearing date for the case has not been scheduled, leaving the legal proceedings pending. This development underscores the government’s commitment to enforcing tax compliance and ensuring that businesses fulfill their fiscal responsibilities in accordance with Nigerian tax laws.
The outcome of this legal action will be closely watched as it unfolds, potentially setting precedents for tax enforcement measures within the country’s corporate sector. It serves as a reminder to all entities operating in Nigeria of the importance of accurate financial reporting and adherence to taxation regulations to avoid legal consequences.
