Mining : Osun Govt Alleges UK-based Company, Thor Explorations Of Tax Evasion

Lists Segilola Gold Project, Others Of Failing To Remit Due Revenue To Osun Govt Since 2019

Osun State Government has vowed that it will not hesitate to use all legal available means to retrieve the state shares from Segilola Gold Project, a subsidiary of Thor Explorations Ltd, UK-based company listed on the Toronto Stock Exchange.

Special Adviser to Governor Ademola Adeleke on Mining and Mineral Resources, Prof. Lukman Jimoda, disclosed this while addressing journalist at the governor’s office, on Thursday.

Prof Jimoda revealed that the state’s investigation confirmed various unethical business practices, including alleged tax evasion, use of proxies, and failure to comply with environmental rules and regulations by the gold mining company.

Other companies linked to Segilola Gold Project according to the SA are; SINIC Engineering Limited, ATF Consulting Limited, Monurent Nigeria Limited, Rabaa Clearing Limited, Deep Rock Drilling Services, and CEFO Security Limited.

Prof. Jimoda highlighted that the federal constitution places environmental oversight under the concurrent list, allowing the state to assess companies’ operations for economic and environmental impacts.

He noted that the Segilola project, despite its significant production since 2019, has resisted complying with extant laws like the Personal Income Tax Act (PITA) and the Company Income Tax Act (CITA) which govern tax levies.

He also expressed concerns over pollution, including particulate emissions and possible acid drains from waste rocks, which pose serious environmental risks to the state.

The Special Adviser who confirmed that Osun State has not received its due revenue from the Segilola project for over three years, despite its bankable gold production since 2019 is demanding the payment of accrued taxes and environmental development levies, as well as proper documentation for all involved parties.

“The government is prepared to take necessary actions to ensure compliance and safeguard the state’s environmental and economic interests”, the Special Adviser noted.

Also speaking, the Financial Consultant to the Office of Mining and Mineral Resources, Dr. Wale Bolorunduro, in his report said the allegations against Thor Explorations Ltd and its subsidiaries mark a significant moment for Osun State, as the government seeks to reclaim its financial rights and ensure compliance with tax regulations.

Dr Bolorunduro said the company’s alleged tax evasion and failure to comply with legal requirements, which could have severe financial implications for Osun.

Dr. Bolorunduro’s detailed statement paints a picture of a company attempting to sidestep its fiscal responsibilities, with far-reaching consequences for the state’s revenue.

Speaking on alleged evasion of tax among others by the companies the consultant said “It is appalling to discover non remittances of taxes deducted as PAYE taxes from its employees and that of the employees of its service providers/ operators, under the Personal Income Tax (PITA) and non compliance with the disclosure requirements under the extant law on taxation.

“The infractions, which cannot be tolerated for Thor, SROL and other associates in other jurisdictions are being perpetrated here, in Osun state. These include failure of Segilola Resources Operating Limited (SROl) to remit, the balance on the 3.2 Billion Naira tax liability of the four (4) year (2019 – 2023) Interim assessment due to the State since 4th of July 2024 under the relevant tax law of the federation and that of the state as Pay as You Earn (PAYE) and the Withholding taxes (individuals) deductions, required to be remitted to the state(s) or federal under Personal Income Tax (PITA) and Company Income Tax (CITA).

“Shirking of its statutory responsibility to provide within 15 days, the basic tax Information/documents to substantiate its dispute of the 3.2 billion Naira tax liability such as: (a) The official Gazette from tax authority permitting the 5% of mining accommodation as Benefit in Kind (b) Breakdown of the Operating Cost by vendors, stipulating Name of vendors, Cost, Type of services and the amount paid to vendors, The address of vendors, etc (c) Evidence of remittance of withholding taxes (d) 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 tax payer (SROL) according to Personal Income Tax Act (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.”

Particularly troubling is the claim that Osun State’s interests in Tropical Mines Ltd were strategically diminished without due financial compensation, raising questions about the fairness of the company’s practices in Nigeria versus its compliance with international standards in the UK and Canada, where it is publicly listed”. Dr. Bolorunduro stated.

Governor Ademola Adeleke’s administration has emphasized the need for due payments to be made, while also ensuring that business operations continue smoothly. This balanced approach underscores the state’s willingness to foster investment, but not at the expense of its fiscal health or integrity.

Responding to the allegations that the Adeleke Dynasty is involved in the management of the Segilola Gold Project, Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi debunked the report, noting that those holding a stake or the other in the gold firm areas shortchanged the Osun state government.

He therefore assured members of the public that the administration of Senator Ademola Adeleke will not relent in efforts to ensure that the state gets its dues from all companies operating in Osun State.