The Rivers State Board of Internal Revenue, on Thursday, initiated contempt proceedings against the Niger Delta Development Commission (NDDC), its Managing Director and three other officials before the Rivers State High Court for allegedly unsealing the commission’s premises without a court order.
The court granted RSBIR’s prayer to serve Form 49 on the officials by substituted service over alleged disobedience of the court’s order.
RSBIR had earlier served Form 48 on the respondents.
The court held that NDDC is owing RSBIS N50billion, being outstanding tax liability owed the River State Government with respect to Pay As You Earn (PAYE), Withholding Tax (WHT) and other unpaid taxes from 2012 to 2017, TheNation reports.
The court also ordered the issuance of a warrant authorising RSBIR to seal any land or property belonging to NDDC in order to recover the tax owed it by the commission.
The court further ordered NDDC to pay N20million as cost incidental to the recovery of the amount owed.
RSBIR had on the April 23, executed an order of the high court and sealed three properties belonging to NDDC in Port Harcourt.
However, following day, NDDC officials met with RSBIR, after which the commission wrote to request that their properties be unsealed.
It was agreed that NDDC would first make some payment but rather than make the payment, NDDC filed a Notice of Appeal at the Court of Appeal on April 26 to challenge the verdict on the tax indebtedness.
The commission also filed a motion for stay of execution of the order at the Court of Appeal and sought to restrain RSBIR from attempting to seal or sealing the commission’s premises pending the determination of the appeal.
RSBIR alleged that on May 6, NDDC unsealed the three premises, repossessed them and placed armed mobile policemen in them without a court order.
The plaintiff consequently served Form 48 on the Acting NDDC MD and the others for allegedly violating the order to seal the properties, which it executed on April 23.
Three motions filed by the NDDC that are pending at the Court of Appeal, while one is pending at the High Court with respect to the contempt proceeding, which NDDC is challenging.
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