Kwara Sues UNILORIN For Unremitted N971m Levies & Taxes

UNILORIN entrance

UNILORIN entrance

The University of Ilorin on Thursday was dragged before a Kwara State High Court (1) sitting in Ilorin presided over by the acting Chief Judge of the State, Justice Ayinla Bamgbola over alleged unremitted levies and taxes of about N971m by the Kwara State Internal Revenue Service.

The plaintiff through its counsel, Funso Lawal, claimed outstanding liabilities/debts arising from alleged under-deduction and or
unremitted taxes/levies due to the Kwara State Government from the defendant’s institution covering from January 2004 to December 2008.

It also claimed an outstanding Pay As you Earn tax of N579m; outstanding withholding tax of N149m; state development levy of N1.6m; statutory penalty at 10 % totaling N72.8m; and statutory interest at 21 per cent (until judgment is given) amounting to N168.5m.

The plaintiff said, “The defendant is a direct employer within jurisdiction and is under the combined provisions of the Personal Tax Act, Board of Internal Revenue Law and other Laws on tax, statutorily responsible for the deduction of PAYE tax on the income of its staff; deduct withholding tax on contracts awarded and to deduct N100 per annum, per employee as development levy.

“The defendant is mandated by the said Laws to promptly remit the deductions above mentioned to the claimant.

“However, recent routine audit and investigation of the defendant’s institutions records revealed that the defendants from 2004 to 2008 under-deducted, failed, refused and neglected to deduct and or remit
the deductions to the claimant.”

UNILORIN was represented by its counsel, Susan Akangbe while the Kwara State Internal Revenue Service was represented by Funso Lawal.

The matter was adjourned till October 22, 2012 for hearing after being mentioned

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