Reps committee questions AGIP Oil over alleged tax evasion
Rep. Abubakar Fulata added that it would be unfair for oil companies to evade taxes at a time when the country was borrowing to fund its budget.
The House of Representatives ad hoc committee on Joint Venture (JV) on Wednesday quizzed the Nigerian Agip Oil Company Ltd over alleged tax evasion.
Rep. Abubakar Fulata, the chairman of the ad hoc committee investigating the structure and accountability of JV business and production sharing contracts (PSCs) at the NNPC, said it was not out to witch hunt anybody.
He added that it would be unfair for oil companies to evade taxes at a time when the country was borrowing to fund its budget.
He said almost all the oil companies in the country had no Certificate of Acceptance of Fixed Assets (CAFA), yet they had been enjoying capital allowance claims in violation of the nation's law.
The committee said the oil companies did not have the right to choose the law they would follow, adding that ignorance of the law could not in any way be absolved.
The committee asked the representative of Agip if in the course of operations they had not short-changed the nation by way of profit tax and capital allowance
The representatives of Agip, which were led by the director and general manager of public affairs, Mr. Barry Nwibani, said over the years they relied only on the Petroleum Tax Act for payment of taxes.