Osun, Delta fine Google, Meta $350m for tax evasion

Tax authorities in Osun and Delta States have fined Google Nigeria and Meta $150 million and $200 million, respectively, for alleged non-remittance of withholding tax.

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

This was disclosed in separate letters signed by Messrs Sola Adewunmi, and Solomon Ighrakpata, Executive Chairmen, Osun and Delta States Internal Revenue Service (IRS), respectively.

The letters signed by Ademola Odetunde, the Chief Operating Officer of LafriquePromedia Limited, the revenue collection agent for the two states, were made available to newsmen on Thursday, July 25, 2024.

Odetunde noted that LafriquePromedia is also consulting the IRS in Plateau State, 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 from the affected states.

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

Odetunde stated that the states were demanding the payment of $350 million being assessed withholding tax deducted, but not remitted by the companies, at the rate of five per cent to the states.

Odetunde noted that the revenue or payment was from digital services provided to content creators, and practitioners in the entertainment, and creative sectors in Delta and Osun States.

He said: “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 deductible at source on 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.”

The Star