The Kwara State High Court on 22nd March 2017 ordered the Nigerian Stored Product and Research Institute (NISPRI) to pay the sum of Forty Four Million, Two Hundred Thousand Naira (N44.2m) only as back duty.
This was passed as judgement in the case of the Kwara State Board of Internal Revenue (KBIR) against NISPRI. This case had been filed by the KBIR over four (4) years ago based on the established liabilities such as Pay-As-You-Earn (PAYE), Withholding Tax, Development Levy, and Water Rate. These are all items for which the organisation, NISPRI is obligated by law to deduct from employees, contractors, etc. and remit to the Board appropriately. When deductions are made but not remitted, then this becomes a liability for the organisation.
The actual liability of NISPRI established by the Board which covers the audit period was Fifty Six Million Naira (N56m). The Court however passed N44.2m which is the established undisputed liability. Further order was also made directing the defendant, NISPRI to pay 10% interest on the judgement sum from the day of judgement, 22nd March 2017 until the judgement debt is finally liquidated.