The Federal government has filed a criminal charge of tax evasion against an oil company, Newcross Petroleum Limited and it’s six directors, before a Federal High Court, Lagos.
The Federal government accused Newcross Petroleum Limited and it’s directors of evading tax payment, totalling $15, 729, 138. 60 million USD and N131, 467, 636. 06 million.
The evaded taxes, according to the federal government are: Companies Income Tax, Petroleum Profits Tax, Tertiary Education Tax, Value Added Tax and Withholding tax.
The six directors charged alongside their company are: Dr. F. A. Fadeyi; Dr. Bolaji Ogundare, Mr. Mutiu Sunmonu, Mr. Stephen Fadeyi, Dr Jackson Fadeyi, Mr. Oluseyi Oladapo and Mr. Victor Sodje.
The oil company and it’s directors were alleged to have committed the infractions between 2014 and 2021.
Specifically, the oil company and it’s directors were alleged to have failed to file correct and complete Companies income tax returns in the prescribed form and manner for 2019 to 2022.
They were also alleged to have unlawfully and willfully evade the assessment, payment, and remittance of tax due and payable to the Federal Government of Nigeria for 2019 to 2022.
The alleged illegal acts of the Newcross Petroleum Limited and it’s director, according to the prosecutor, Barrister Moses Ideho from the AGF’s office, contravened sections 40, 55 and 53 of the Federal Inland Revenue Service Establishment Act 2007 (as amended).
Their actions is also contravened sections 26 & 27 of Federal Inland Revenue Service Establishment Act 2007 (as amended); Section 46 Petroleum Profit Tax Act for non – payment of tax and enforcement of payment of outstanding Petroleum Profit Tax; Section 11 of the Tertiary Education Trust Fund (Establishment) Act 2011 for non-compliance with extant provisions of the law.
The alleged illegal acts is also void to be contrary to and punishable under Section and 26 and 37 of the Value Added Tax Act (Establishment) Act. And Section 82 of the Companies Income Tax Act for failure to deduct tax and comply with the withholding tax regulations.
Neither the company or it’s directors have appear before the court to take their plea on the allegations since September 12 2024, when the charge was filed.
The court has fixed January 23, 2025, for their arraignment.
Part of the charges against the defendants read: “That you Newcross Petroleum Limited, Dr. F. A. Fadeyi And Dr. Bolaji Ogundare, Mr. Mutiu Sunmonu, Mr. Stephen Fadeyi, Dr Jackson Fadeyi, Mr. Oluseyi Oladapo, Mr. Victor Sodje, sometime between 2014-2021 within the jurisdiction of this Honorable Court, whilst carrying out taxable services in the course of doing business, was obligated to pay tax liability in the sum of $7, 864, 569. 48 and N67, 682, 818. 03 for Companies Income Tax, Petroleum Profits Tax, Tertiary Education Tax, Value Added Tax and Withholding tax and thereby committed an offence contrary to and punishable under S.40 of the Federal Inland Revenue Service Establishment Act 2007 (as amended).
“That you Newcross Petroleum Limited, Dr. F. A. Fadeyi And Dr. Bolaji Ogundare, Mr. Mutiu Sunmonu, Mr. Stephen Fadeyi, Dr Jackson Fadeyi, Mr. Oluseyi Oladapo, Mr. Victor Sodje sometime between 2014 and 2021, within the jurisdiction of this Honorable Court, whilst carrying out taxable services in the course of doing business, failed to file correct and complete Companies income tax returns in the prescribed form and manner for 2019 to 2022 years of assessment in the sum of $2, 200, 964. 20, for the purpose of paying the relevant tax administered by the Service and in so doing, committed an offence, contrary to and punishable under S. 55 of the Companies Income Tax Act (as amended).
“That you Newcross Petroleum Limited, Dr. F. A. Fadeyi And Dr. Bolaji Ogundare, Mr. Mutiu Sunmonu, Mr. Stephen Fadeyi, Dr Jackson Fadeyi, Mr. Oluseyi Oladapo, and Mr. Victor Sodje sometime between 2014 and 2022, in Abuja, Federal Capital Territory and within the jurisdiction of this Honorable Court, whilst carrying out taxable services in the course of doing business, did unlawfully and willfully evade the assessment, payment, and remittance of tax due and payable to the Federal Government of Nigeria for 2019 to 2022 years of assessment in the sum of $2,200,964.20, and in so doing, committed an offence, contrary to and punishable under S. 53 of the Company Income Tax Act (as amended).
“That you Newcross Petroleum Limited, Dr. F. A. Fadeyi And Dr. Bolaji Ogundare, Mr. Mutiu Sunmonu, Mr. Stephen Fadeyi, Dr Jackson Fadeyi, Mr. Oluseyi Oladapo, Mr. Victor Sodje sometime between 2014 and 2021, in Abuja, Federal Capital Territory and within the jurisdiction of this Honorable Court, whilst engaged in the normal course of business of NEWCROSS PETROLEUM LIMITED, neglected and refused to deduct Tertiary Education taxes in the sum of $585, 749.73 for 2019 to 2021 years of assessment due to the Federal Government and in so doing committed an offence contrary to and punishable under Section 11 of the Tertiary Education Trust Fund (Establishment) Act 2011 for non-compliance with extant provisions of the law.
That you Newcross Petroleum Limited, Dr. F. A. Fadeyi And Dr. Bolaji Ogundare, Mr. Mutiu Sunmonu, Mr. Stephen Fadeyi, Dr Jackson Fadeyi, Mr. Oluseyi Oladapo, Mr. Victor Sodje, sometime between 2014 and 2021, in Abuja, Federal Capital Territory and within the jurisdiction of this Honorable Court, whilst engaged in the normal course of business of NEWCROSS PETROLEUM LIMITED, neglected and refused to deduct Value Added taxes in the sum of $641,777.28 for 2014 to 2022 years and N11, 688,274.85 for 2019 to 2021 years of assessment due to the Federal Government and in so doing committed an offence contrary to and punishable under Sections 26 and 37 of the Value Added Tax Act (Establishment) Act.
“That you Newcross Petroleum Limited, Dr. F. A. Fadeyi And Dr. Bolaji Ogundare, Mr. Mutiu Sunmonu, Mr. Stephen Fadeyi, Dr Jackson Fadeyi, Mr. Oluseyi Oladapo, Mr. Victor Sodje, sometime between 2014 and 2021, in Abuja, Federal Capital Territory and within the jurisdiction of this Honorable Court, whilst engaged in the normal course of business of NEWCROSS PETROLEUM LIMITED, neglected and refused to deduct Withholding taxes in the sum of $637,335.72 for 2014 to 2021 years of assessment and the sums of N52, 086,543.18 due to the Federal Government and in so doing committed an offence contrary to and punishable under Section 82 of the Companies Income Tax Act for failure to deduct tax and comply with the withholding tax regulations.”
