Osun, Delta fine Google, Meta 0 million each for tax evasion

Osun, Delta fine Google, Meta $350 million each for tax evasion

The Osun and Delta states’ tax authorities have fined Google Nigeria and Meta Platforms Inc. $150 million and $200 million, respectively, for alleged non-remittance of withholding tax.

The fine is specifically for the withholding tax (WHT) allegedly deducted from content creators and entertainers in the two states from 2020 till date.

This is contained in separate letters signed by Sola Adewunmi and Solomon Ighrakpata, Osun and Delta States Internal Revenue Service (IRS) executive chairmen, respectively.

The letters, also signed by Ademola Odetunde, chief operating officer of LafriquePromedia Ltd., the states’ revenue collection agent, were made available to journalists in Lagos.

According to Mr Odetunde, LafriquePromedia is also consulting for the IRS of Plateau, which is also facing the same challenge and coming up with similar demand.

He said the companies were issued a 14-day notice of compliance, effective July 12 and July 19, respectively, from the affected states.

Mr Odetunde said the companies, upon receipt of those letters, would face the consequences of non-compliance.

He said the states were demanding for the payment of the withholding tax deducted, but not remitted by the companies, at the rate of five per cent to the states.

Mr Odetunde said the revenue or payment was from digital services provided to content creators and practitioners in the entertainment and creative sector within Delta and Osun.

”By these demands and notices for compliance, we hereby advise your companies to comply with our demands through our revenue agent within the next 14 days.

”We want to bring your attention to the fact that the concept of WHT is a form of advance payment of income tax, which is deductable at the source of payment made for certain commercial transactions by Nigerian customers.

”Same must be remitted to the appropriate tax authorities – Federal, by corporate bodies, or State Internal Revenue Service, by individual, enterprises and partnership within 21 days after the end of the month the transaction was made,” he said.

According to him, the companies, as operators of social media platforms within the Osun and Delta states’ digital landscape, are mandated to withhold tax in line with the provisions of the extant law.

He said the procedure also included services provided to content creators and online practitioners within Osun and Delta and remittances of the tax to the relevant tax authorities through its designated agent.

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