I.The Agency had accumulated deducted taxes (VAT & WHT) outstanding in its books and yet to be remitted to relevant tax authorities as at 31 December, 2017. As at the time of the audit exercise in 2018, this liability stood at N95,641,112.00.
II.This long outstanding tax liability included the accumulated sum of N54,676,173.00 as at 31 December, 2015 which comprised outstanding VAT and WHT liabilities between 2012 and 2015, as reported on pages 379 and 380 of the Auditor-General’s 2014 Annual Report published in 2017/2018 and additional non-remitted sum of N40,964,939.00 in 2016.
III.Despite tax liability reduction agreement with officials of the Federal Inland Revenue Service (FIRS) which purportedly reduced the tax liability from N95,641,112.00 to N66,291,622.49 as shown in its 2017 Trial Balance, Audited Financial Statements, General Ledger and correspondence between the Agency and the tax office, the NCSL failed to make any payment.
IV.As at the time of the audit in 2018, the concession/waiver of the sum of N29,349,489.51, that arose from the above tax liability reduction could not be justified by NCSL, as it failed to honour payment terms agreed with the tax authority.