Osun Seals OAUTHC Over Unpaid Taxes

Posted on: Tue 27-08-2013

The Osun State Internal Revenue Service has sealed the Administrative Complex of the Obafemi Awolowo University Teaching Hospital Complex (OAUTHC), Ile-Ife, over unpaid Pay-As-You-Earn (PAYE) taxes running into over N3.1 billion.

The government was granted an order to seal the complex by an Osogbo High Court after the expiration of a seven-day ultimatum given to the hospital’s management to pay up.

It was learnt that OAUTHC has not remitted taxes deducted from its staff to the state in six years, from 2006 to 2011.

The Chief Medical Director (CMD), Prof. Sanya Adejuyigbe, and other management staff could not access their offices yesterday when The Nation visited the hospital.

Workers, including the CMD, were seen in groups discussing the matter.

Prof. Adejuyigbe said: “Since the new tax regime was introduced in 2005, the management is yet to implement it. We are using the old tax rate for our workers. Many of the staff affected by the development have retired from service. The new contributory pension scheme makes the unpaid tax to be bogus.

“We urge the government to give us more time to reconcile the old tax rate with the new deduction. We cannot afford to pay the outstanding once. We should be allowed to spread the payment over eight years. All what we generate cannot settle the outstanding amount. The money is not available. We are hoping to put in place a tax committee to open up dialogue with the government and resolve the matter."

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