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Tax evasion: Reps Ad-hoc Committee indicts 30 oil companies in Nigeria

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Over 30 Oil Companies have been indicted for evading tax payment, the House of Representatives Ad-hoc Committee investigating the Structure and Accountability of the Joint Venture (JV) Business and Production Sharing Contract (PSCs) of the NNPL stated this in a report.

This was contained in a report sighted by CAPITAL POST in Abuja on Thursday, saying that tax evasion was made possible in connivance with some agencies of government. com/pagead/js/adsbygoogle.js"> com/pagead/js/adsbygoogle.js"> googlesyndication.com/pagead/js/adsbygoogle.js">

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The report revealed how Oil Companies operating in Nigeria have evaded tax payment since 1991.

The report said oil revenue accounts for two-third of government’s funding and any form of corruption within the sector should not be treated with levity.

The report lamented the notorious cases of fraud and missing fund in the NNPL from year to year, adding that investigation by the Committee showed how JVs and PSCs of NNPL sell Nigerian oil at lowest cost to their own subsidiaries in a tax haven and then sell that same oil to other buyers at full price.

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Of particular concerns, the report pointed out, was the under report of volume of oil production and the circumvention of the Nigerian tax laws.

“The ad-hoc committee is praying the House to adopt the recommendations with a view to bringing sanity in the oil and gas operation in Nigeria and for greater benefits to the citizens,” part of the report said.

Chevron oil Nigeria Limited, a multinational oil company operating in Nigeria allegedly breached the law in their acclaimed construction of a 34,000 barrel per day (bpd) of Gas to Liquid (GTL) plant at Escravos, Delta State.

“A total of $1.294 billion was earmarked for the EGTL project in 2001 and by the time the contract was awarded in 2005, the final approved cost rose to $2.941 billion which was further increased to $8.6 billion as at 31st December 2011, and upon completion in 2014, the total project was over $10 billion.”

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Ad-hoc Committee members lamented the humongous amount compared to what is obtainable in Quatar, saying the same capacity, technology, engineering procurement and construction (EPC) contractors and even operators cost less than $1.5 billion.

Chevron was asked to refund a differential of $8 to the Federal government’s account.

The report explained that almost all oil companies in Nigeria who enjoyed capital allowance in Nigeria have no Certificate of Acceptance of Fixed Asset as prescribed by the Industrial Inspectorate Act.

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