“False Returns, Unpaid Taxes” — Nigeria IRS Files Six-Count Charge Against Saipem, Directors Over Alleged ₦66.4bn ,$938,080 Fraud

The Nigeria Inland Revenue Service (IRS) has filed a six-count criminal charge against oil and gas firm Saipem Contracting Nigeria Limited and two of its senior Directors, Michele Poggi and Giani Di Petro, over alleged tax fraud amounting to N66.4 billion and $938,080 between 2014 and 2019.

The company and its Directors were charged before Justice Daniel Osiagor of a Federal High Court, Lagos, following an investigation into the firm’s tax compliance records during the six-year assessment period.

Prosecutor Moses Ideho, informed the court that the Defendants failed to deduct and remit multiple categories of taxes, including Companies Income Tax, Tertiary Education Tax, Capital Gains Tax, Withholding Tax, Value Added Tax, Stamp Duties, and the Nigeria Police Trust Fund levy, while carrying out taxable business operations in Nigeria. The alleged illegal acts are contrary to sections of the Federal Inland Revenue Service (Establishment) Act 2007, and the Companies Income Tax Act, Cap C21 Laws of the Federation of Nigeria 2004.

At the scheduled arraignment on Friday, the Defendants were conspicuously absent, but were represented by B. A. Sodipo, SAN, leading three other Lawyers. The defence informed the court that a Notice of Preliminary Objection had been filed, on behalf of the Defendants.

The Prosecutor told the court that he was served with the Defendants’ notice on Thursday, and requested time to respond. Consequently, Justice Osiagor adjourned the matter to June 29 for hearing of the preliminary objection.

The charges allege that the Defendants failed to remit taxes, submitted false returns, and wilfully neglected to pay assessed taxes, resulting in the huge sum remaining unpaid to the Federal Government.