FG revives $42m Tax Evasion case against Saipem, top executives

By Akin Kuponiyi

The Federal Government of Nigeria has renewed its legal action against Saipem Contracting Nigeria Limited and two of its officials, Michele Poggi and Giani Di Petro, over an alleged $42,068,874.35 tax evasion.

In an amended seven-count charge filed before the Federal High Court in Lagos, a team of nine government lawyers, led by Bolanle Oniyangi, accused the multinational construction firm and its executives of failing to fulfill their tax obligations while conducting business in Nigeria between 2010 and 2014.

According to the charge, Saipem Contracting Nigeria Limited and its officials were required to pay company income tax amounting to $42,068,874.35 but allegedly failed to do so, an act deemed an offence under Section 40 of the Federal Inland Revenue Service Establishment Act 2007 (as amended).

The prosecution also alleged that the defendants failed to file accurate and complete company income tax returns for the years 2010, 2011, 2012, 2013, and 2014, violating Section 55 of the Companies Income Tax Act (as amended).

Additionally, the Federal Government accused Saipem and its officials of failing to issue tax invoices for taxable services rendered in 2010 and 2013, amounting to $34,656,833.

This, according to the charge, contravenes Section 29 of the Value Added Tax Act of 1993 (as amended).

The case is scheduled for hearing on February 14, 2025, as the government intensifies its efforts to recover the allegedly evaded tax and enforce compliance with tax regulations.