Four companies, two with foreign ownership, that deal in importation of electronic and household appliances have exploited a defective import tariff waiver policy of Nigerian government and special forex allocation to manufacturers by Central Bank of Nigeria to make billions of naira through fraudulent claims.
Those who import goods in CKD/SKD obtain tax waivers from the Ministry of Finance and pay lesser import tariff. Instead of the usual 20-35 per cent duty on such products, they pay just 5 per cent with the belief that the importers have assembling plants where they couple the items, and employ Nigerians and create opportunity for transfer of technology.
A trove of papers leak from Mossack Fonseca, a Panama-based law firm, revealed astonishing web of individuals and businesses that hide their wealth in tax haven through shell companies. The gigantic leak obtained by the International Consortium of Investigative Journalists, ICIJ, became known asConifer Holdings Limited was registered in British Virgin Islands in 1995. Two years later, the company incorporated Somotex in Nigeria with 99.9 per cent shares belonging to the offshore company.
Such obscure parent company in a tax heaven is usually used to engage in money laundering. However, Peter Ubani, a lawyer, said Somotex has to still operate under the Nigeria’s financial regulations despite being owned by an offshore company. TieTie added that “cash inflow and outflow, must be monitored by the institutions such as EFCC, which oversees the Money Laundering Act. At that point, the concern to anyone who is worried about tax evasion should be in regard to illicit financial flow.
“This is not how things are done,” Erbai said. “You cannot just come in to our organization without informing us and be demanding for answers. This is a private firm. You have to give us enough advance notice and we will decide if we want to give you information or not.” Official documents show that Somotex had been importing fully built products and still claimed CKD. On January 6, 2014, the company imported twelve 40 feet containers of fully built television sets as CKD with Customs Reference C674 through the Apapa Port. It paid 5 per cent import tax of N17, 757,486.00, instead of 20 per cent for the consignment valued at N146.12 million. By claiming CKD on fully built television sets, Somotex made N24.6 million on that particular transaction.
They work from 7:30am to 5pm Monday to Saturday on monthly salary of N15, 200 for entrants and N17, 500 for line supervisor. They do not have any insurance and they do not run shifts. In June 2018, Fouani, the sole distributor of LG products in Nigeria imported goods worth billions of naira, including refrigerators, air conditioners, LCD TVs and washing machines. These goods which normally should attract import tariff of between 20-35 per cent, the company paid just 5 per cent tariff on the fully built products through false classification.
Under the same shady importations were 324 sets of refrigerators, 1150 sets of fully built refrigerators and 1100 sets of washing machines at the value of $229,680, $227,090 and $65,850 respectively that the company claimed CKD.Sims Nigeria Limited, on May 5, 2018, got forest under the CBN rate to import air conditioning machines valued at $308,471 and paid through Fidelity Bank with Form M number MF20180030886.
“For me in my own capacity, I only liaise with agents who deliver products. But if you want to see our factory, we have a big factory at Amuwo Odofin industrial estate. That is where they manufacture all these items you are seeing,” he said.
I want my money back 😡😡🤬🤬🤬
The kind of fraud going on in this integrity dispensation na die! And all the 'my belle' first activists are looking the other way. Everybody throway face.
It’s not every day one can say this but today, I’m proud of this reporting - there is hope yet for journalism in Nigeria. Even if it’s sponsored by non-Nigerians! That said, I would like any government official to explain to Nigeria what’s going on here ‘nd what we can expect...
But fouani doesn't manufacture any of its LG products in Nigeria, how could they have been getting Forex at CBN rate for manufacturers?
no be today, they are many
Nigerians shine your eyes. Everyone in business guns, for maximum profit, the buyers must be super active to checkmate them. That is why every country REGULATES business dynamics. However here regulators are compromised and they actively partner the providers against the Nigerian
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SaharaReporters - 🏆 9. / 63 Read more »