The House of Representatives yesterday commenced investigation into the activities of two money deposit banks over allegations bothering on underpayment of Withholding Tax (WHT) and Value Added Tax (VAT) as well as foreign exchange leakages to the tune of $28.048 billion between 2010 and 2019.
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According to the report of the first phase investigation conducted by the House of Representatives Committee on Finance and Banking & Currency, one of the banks allegedly underpaid WHT and VAT worth $2,838,296,330.74 and was involved in foreign exchange leakages to the tune of $25,199,851,112.97 for the period under review.
The report indicted another bank for tax infractions and foreign exchange infractions to the tune of $9,963,335.72.
Speaking at the investigative hearing, Chairman of the House Committee on Finance, Hon. James Faleke expressed concern over the flagrant breach of extant financial regulations and relevant provisions of the 1999 Constitution (as amended).
He said: “The Committees wish to inform your bank of the completion of its first phase of investigation of your bank’s level of compliance with extant laws and regulation, with respect to the administration and management of foreign exchange transactions’ inflows and outflows as they relate to: Unpaid taxes (VAT & WHT) on applicable foreign transfer payments by your bank and customers for reason of neglect, in ensuring evidence of such payments are submitted before any applicable foreign transfer payments are made.
“Foreign exchange leakages arising from the mismanagement of inflows from capital importation, and capital outflows on account of any validly issued certificate of capital importation. Verification and confirmation from your customers bank statements, of the utilisation of the Naira proceeds of capital importation any taxable transactions. Confirmation and verification in your banks’ sales blotters of the utilisation of Foreign Exchange purchased by your bank from each of the sources such as Capital Importation, CBN, Interbank, Export proceeds (Oil and Non-Oil Domiciliary accounts, Over the counter etc.
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