British Airways has admitted to tax evasion in Nigeria, marking a turning point in a face-off between Nigeria and the foreign airline which began weeks ago over discriminatory fare charges on the lucrative London-Lagos route.
Appearing before the Senate Committee on Aviation that organised an investigative public hearing on the violation of aviation laws by foreign airlines, BA Country Manager Kola Olayinka said: “It is not only BA. No airline, as we speak, is remitting the five per cent charged on airfares to the Nigeria Civil Aviation Authority (NCAA).”
The airline admitted it had failed to remit the five per cent Passenger Fuel Surcharge (PFS) on tickets to NCAA as required by global aviation practices.
Although the British carrier tried to assure the committee of its preparedness to begin paying the tax, provided the legal requirements were clearly spelt out, the committee threatened to recommend BA for prosecution.
The general manager of Air France-KLM Nigeria, Mr Christian Herpi, had told the same committee that payment of PFS had been a practice by airlines worldwide and was not peculiar to airlines flying from Nigeria.
Mr Uzodinma said: “Refusal to remit taxes is not a civil matter, it is a criminal offence which should be investigated by the appropriate department and we may have to do so.”
“That others are not paying doesn’t make it right. The problem is that the NCAA continues to treat this matter as civil.”
The tax evasion charge is the latest in air commerce war between Nigeria and Britain.
Last month Nigeria’s Aviation Minister Stella Oduah issued a 30-day ultimatum to BA and Virgin Atlantic to review downwards their air fares on Lagos-London route or face a ban
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