Osun seals off OAUTHC over N3.1bn tax default

Osun State government, through its Internal Revenue Service, at the weekend, shut down the Obafemi Awolowo University Teaching Hospital Complex (OAUTHC), Ile-Ife, over non-payment of tax totalling about N3.1billion by management of the institution.
Officials of the state Internal Revenue Service, led by the Senior Special Assistant to the Governor on Internally Generated Revenue (IGR),
Mr Femi Balogun, swooped on the premises of the teaching hospital to carry out its closure.
The management of the hospital was alleged to have owed the state government over N3billion tax arrears over the period of six years.
Nigerian Tribune was reliably informed that the officials of the state Internal Revenue Service acted on the order of an Osogbo High Court, which provided legal backing for the agency, to seal off the administrative building of the hospital over tax default.
The Internal Revenue Service had, in a letter of notice addressed to the Chief Medical Director of the institution, Professor Sanya Adejuyigbe, dated 11th January, 2013 with reference number TI/NBDIE/2006-2011/88, signed by Mr Olufemi Balogun, to intimate the hospital’s management over the default.
The letter specifically stated that the court had empowered the agency to compel the hospital to pay outstanding liabilities for Pa as You Earn (PAYE) of its staff.
Before the clamp down on the OAUTHC, the Nigerian Tribune learnt that the revenue service had conducted an assessment of all the federal, state and private institutions including banks in the state and it was discovered that OAUTHC had failed to remit the taxes deducted from all its staff due to the state, between 2006 and 2011.
The agency was said to have given the hospital a seven-day ultimatum to pay up the outstanding tax arrears or risk being shut down.
But, in an exparte motion granted by Justice Oyejide Falola of an Osogbo High Court on 15th July 2013, the court issued a warrant to revenue service to effect payment of over N3 billion.
Speaking to newsmen, in Osogbo, the Senior Special Assistant to the Governor on IGR, Mr Balogun said the state government was mindful of the operations of the hospital, hence its resolve to shut down only the administrative complex of the institution.
Efforts to speak with the Chief Medical Director (CMD), Professor Adejuyigbe and the Public Relations Officer (PRO) of the institution, Mr Olu Bello, proved abortive as none of them responded to the calls put across to their cell phones.