By Michael Ofulue, Osogbo

The Osun State Government has vowed to recover ₦3.2 billion from a federal government mining company, SEGILOLA, located in the state, for allegedly refusing to remit its taxes to the state government.

The government frowned upon the attitude and refusal of the mining company to remit its taxes to the state, vowing to employ all legal means to reclaim the money due to the state.

Osun State will do whatever is legal, no matter how temporary, to fulfil the statutory obligation of the government to its citizens.

Addressing newsmen in Osogbo, Professor Lukeman Jimoda, Special Adviser to the Governor on Mining and Natural Resources, said the government had no choice but to inform the public about recent findings on Thor Explorations UK and its Segilola Gold Project, operated by Segilola Resources Operating Limited.

“We don’t want them out of Osun State, but they must fulfil their obligations and responsibilities to the state.”

The company, Segilola Resources Operating Limited (SROL), was alleged to have been evading the payment of taxes to the state despite the environmental hazards occasionally caused by the mining operation.

He explained that SROL is a company domiciled in Nigeria that operates the Segilola Gold Project, located in Iperindo, Osun State, Nigeria.

“SROL is a subsidiary of Thor Explorations Ltd, United Kingdom, a gold exploration and development company listed on both the TSX Venture Exchange of Toronto (TSX-V:THX) and AIM Market of the London Stock Exchange (AIM:THX).

“We discovered the non-remittance of taxes deducted as PAYE from its employees, as well as from the employees of its service providers/operators, under the Personal Income Tax (PITA). Additionally, there was non-compliance with the disclosure requirements under the extant tax laws.

“The infractions, which cannot be tolerated for Thor, SROL, and other associates in other jurisdictions, are being perpetrated here in Osun State.

“These include the failure of Segilola Resources Operating Limited (SROL) to remit the balance of the ₦3.2 billion tax liability from the four-year (2019–2023) interim assessment due to the state since 4th July 2024, under the relevant tax laws of the federation and the state, as Pay As You Earn (PAYE) and withholding taxes (individuals), which are required to be remitted to the state or federal government under PITA and the Company Income Tax Act (CITA).

“The dispute of the ₦3.2 billion tax liability includes: (a) the official gazette from the tax authority permitting the 5% mining accommodation as a Benefit in Kind; (b) a breakdown of the operating costs by vendors, stipulating the name of vendors, cost, type of services, and the amount paid to vendors; (c) the address of vendors; (d) evidence of remittance of withholding taxes; and (e) the submission of the general ledger/activity reports and trial balances to verify salary and nominal payroll.

“These documents have been outstanding since 11th July 2024, despite the fact that the onus of proof is on the taxpayer (SROL), according to PITA.

“This is a deliberate attempt to delay payment and allegedly to evade taxes on direct and indirect employees, contrary to Section 81(3) of PITA.

“There has also been non-disclosure of all the service providers operating in the same location and on the same Segilola Gold Project, who are providing services to SROL through direct or indirect recruitment and via outsourcing of employees.”

Jimoda said the government accused the company of allegedly hiding employees under these service providers and allegedly evading the corresponding PAYE taxes due to the state.

“While Sinic Engineering Ltd has been evasive, ATF Consulting Limited has failed to fully pay the ₦160 million undisputed interim tax liability demanded by the Osun State Government, having only paid ₦100 million, with the outstanding amount abandoned since 26th August 2024.

“The company, ATF, has refused to pay the business premises levy, claiming they operate within Segilola’s premises.

“The progressive assessment established against ATF has increased the tax liability to ₦436 million as tax intelligence trickles in. Other operators such as Monurent Nigeria Limited, Deep Rock Drilling Services, and CEFO Security Limited are yet to present themselves to the Osun State tax authority.

“We cannot find their records of self-assessment, as required by the tax laws. These are clear violations of Section 64 of CITA on the premises of the Segilola Gold Project, operated by Segilola Resources Operating Limited (SROL) and a subsidiary of Thor Explorations UK.

The Governor would like to assure the public and the media that due process has been followed, in accordance with the extant laws of the Federal Republic of Nigeria on Personal Income and Company Income Taxes.

Also speaking, Dr Wale Bolorunduro, Financial Consultant to the Ministry of Mining and Natural Resources, hinted that government agencies and their technocrats had carried out proper assessments. Reviews and meetings had been held to encourage Segilola and its associates to pay promptly, while the onus of proof remains with them, according to the extant tax laws.

According to him, the company, SROL, has engaged in subterfuge to allegedly evade taxes by failing to fully disclose its service providers using the same premises and their corresponding tax information, which is required by the state for proper tax assessment of their employees, staff, and labour.

This has resulted in delays and extra work for government officials, which constitutes an obstruction under Section 97 of PITA. The state government had no choice but to take action, no matter how temporary or subtle, in response to the company’s failure to provide tax information on the ₦3.2 billion, four-year PAYE assessment and withholding tax (individuals) remittance, on a full disclosure basis to the government since the 11th July 2024 deadline.

Despite the fact that the burden of proof is on the taxpayer (Segilola), according to PITA, we have done our best.

How Thor Explorations Ltd, UK, with its disclosure requirements mandated by virtue of its public listing on the London and Toronto stock exchanges, could not rein in its subsidiaries and operators in Nigeria remains a mystery to the state government.

It is also unfortunate that Thor Explorations Ltd of the United Kingdom, listed on the London and Toronto Stock Exchanges, would allow its subsidiaries and associates on the Segilola Gold Project to engage in questionable structuring of their payroll and commercial activities without full disclosure of all operators, allegedly to evade tax payments due to Osun State. We are alarmed that what cannot be condoned in other jurisdictions is being carried out by Thor Explorations.”