The news space has been agog with the news of high profile individuals, politicians and businessmen, all over the world owning offshore companies in what has been dubbed the ‘Pandora Papers’. It is said to be a project involving 600 journalists from 150 news organisations around the world with a cache of 11.9 million confidential files purportedly exposing how the world super rich use tax havens to avoid paying tax. This is not the first time investigations about shell companies involving the ultra rich have made their way to the mainstream media. In 2017, a similar report tagged ‘the Paradise Papers’, a report of 1.4 terabyte data, created a sensation when it was released.

Peter Obi, a two term governor of Anambra State and former presidential aspirant under the PDP was one of the names dropped by the report. A politician known for his trailblazing policies and enviable record as a pacesetter and administrator extraordinaire. As governor, Mr. Obi’s ANIDS (Anambra Integrated Development Strategy), an initiative premised on the internationally acclaimed Millennium Development Goals (MDGs) of eradicating of extreme poverty, reduction of child mortality, boost to maternal health, environmental sustainability and global partnership in development, left behind an infrastructurally improved state. His investment in education transformed the educational system of the state, making it possible for the state to become the best performing state in mathematics and sciences, best in NECO, best in WAEC and overall best in JAMB scores.

His administration’s policies attracted direct foreign investment, which provided jobs and encouraged indigenous investments. It is on record that he left his state debt free at the end of his tenure as governor of Anambra state. Former World Bank Director in Nigeria, Omo Ruhl once described him as “an exceptional leader and very prudent in financial management and I believe his interest is to better the lots of his people which to my mind is very remarkable.”

In the light of the coming high octane drama that is Nigerian political season, it is no surprise that Mr. Obi has found himself at the center of an unwelcome attention. In the ‘Pandora Papers’, there are insinuations of illegality surrounding his ownership of offshore companies. His companies Gabriella Investment, PMGG Investment and Trust, Gabriella Settlement were entities listed in the reports. The tradition of using offshore companies is worldwide and not peculiar to Nigeria. Now it begs the question, did Mr. Obi break the law by owning these companies. In my opinion, he did not. There’s nothing unlawful in the ownership of offshore companies as long as they are not vehicles for money laundering. The report aimed through the emphasis on the listed companies, to portray the former governor and presidential aspirant as though he had committed a crime by ownership of offshore companies whereas there is no law in Nigeria stipulating ownership of offshore assets as a crime.

On the issue of failure to declare his companies assets to the Code of Conduct Bureau, Mr Obi had stated in his defense that he was not under obligation to declare companies jointly owned. A statement which the report appears to vilify. Indeed the code of conduct law requires public office holders to declare own assets, as well as those owned by their spouses and children below the age of 18. However, the report failed to show if the listed companies linked to Mr. Obi held any assets, traded or conducted business that would have generated taxable income in order to qualify as ‘assets’. If these companies, registered way before Mr. Obi became a public official are not proven to generate income, then these reports are malicious and aimed at painting Mr. Obi in a poor light.

The report also accuses Mr. Obi of owning a Lloyds TSB bank account as governor in contravention of the Code of Conduct Law, while in the same breath admitting that the account was opened in 2001, five years before he became governor. What the report should have told Nigerians is if the said account was active and used for transactions while Mr. Obi was governor.

Taking a look at the issue of declaring his family’s trust, we must look to the Personal Income Tax (Amendment) Act for guidance. It must be noted that there is a school of thought that supports the argument that only the amount distributed from an Offshore Trust to a taxable person in Nigeria will form a taxable income in Nigeria and not the entire income derived by the Offshore Trust from the assets/ investments held in trust. Such income will then be exempted from tax where it is brought into Nigeria through Government approved channels, such as the commercial banks. Now, the reports failed to showed how the Trust is administered and whether any amount is paid to Mr. Obi in order to make him liable of tax avoidance. Rather it avers that a New Zealander entity, Granite Trust Company Limited is the sole trustee of The Gabriella Settlement. Should a foreign trustee be subject to Nigerian tax laws?

Paragraph 1 of the second schedule to PITAM provides that the income of a Trust shall be deemed to be income of the Settlor of the Trust where the Settlor retains or has a right over the capital assets of the trust; retains or has a right over the income derived from the capital assets of the trust; makes use of the income of the trust by borrowing from it; and resumes control or the spouse resumes control over the asset or income of the Trust. By this submission, Granite Trust Company, a non-Nigerian entity cannot be liable to Nigerian tax laws as it is the sole trustee of the trust.

If Mr. Obi has no legal authority to either control or influence the trust, how can he be said to have broken the law? These are the pertinent questions that begs answers.

Umari Ayim is a Chartered Arbitrator & Managing Partner, Golde Aten Consultants & Solicitors

https://leaders.ng/as-the-law-stands-peter-obi-and-the-issue-of-offshore-companies/

Even though I hate Peter Obi because of the Ezu river massacre but this is a one sided investigation aimed at soiling his name. He might be guilty of the offence but where are Tinubu's of this world? Many curropt fellows like him are roaming around unabated in Nigeria. Fighting corruption should be holistically and not witchhunting based on ethnic and religious creed. My one cent

Fahdiga:
Even though I hate Peter Obi because of the Ezu river massacre but this is a one sided investigation aimed at soiling his name. He might be guilty of the offence but where are Tinubu's of this world? Many curropt fellows like him are roaming around unabated in Nigeria. Fighting corruption should be holistically and not witchhunting based on ethnic and religious creed. My one cent

Look at the guy that was abusing me.
He couldn't even spell corrupt correctly.

Illiterate Peoples of Biafra

Moferere:


Look at the guy that was abusing me.
He couldn't even spell corruption correctly.

Illiterate Peoples of Biafra

This one is definitely suffering from deficiency in English language. You are the illiterate here for not recognizing my good English language. I de shame on your behalf

You people should stop dragging mad woman breast

1. Peter Obi was already a wealthy international merchant and investor in many companies before becoming the Governor of Anambra State. He was loved and loathed for his "aka aradite" shrewd use of money.

2. In recent time, Peter Obi has proudly flaunted his holier than thou pontification and austere governance disposition as his political Unique Selling Propositions. He made other politicians look a bit 'dirty'. Here lies the reason why his Pandora paper revelations was SHOKING unlike that of the fantastically roquish Gov. Bagudu of Kebbi State. Peter Obi boxed himself into a corner. And now, his political opponents are making most of the fact that he is after all NOT a saint.

3. Peter Obi who used ex-Gov. Fashola's 'deportation' of Igbos from Lagos as a political tool shouldn't be surprised that his Pandora paper revelations have become political tool in the hands of others. Politics is about making most of your opponent's blunders and misfortunes. It is up to him to dig himself up.

Fahdiga:
Even though I hate Peter Obi because of the Ezu river massacre but this is a one sided investigation aimed at soiling his name. He might be guilty of the offence but where are Tinubu's of this world? Many curropt fellows like him are roaming around unabated in Nigeria. Fighting corruption should be holistically and not witchhunting based on ethnic and religious creed. My one cent

See this one swimming in the pool of hypocrisy..

Just this morning you made the comments below.

Very pity case

and when did english become the biafran official language? if no be inferiority complex dey worry you, wetin make english take betterpass pidgin, igbo or any language in its shit hole wey make you dey use am as standard to yab biafrans?

Moferere:


Look at the guy that was abusing me.
He couldn't even spell corruption correctly.

Illiterate Peoples of Biafra

The simple rule of being a Thief or felon is do not get caught

This has NOTHING to do with Tinubu who by the way did go on trial for similar allegations
Tinubu had his day in court.

It is no defence to say someone else is doing it that is just childish

helinues:


See this one swimming in the pool of hypocrisy..

Just this morning you made the comments below.

Very pity case

Oga you are the one that is swimming in hypocrisy. My question is does it mean that it is only politicians of south east extraction that indulge in wanton looting of our patrimony?

What we all have allowed must not be repudiated by malevolent press releases.

Moferere:



Dilector, no lefelendum, no erection.


Olodo oshi

Pls go back to your primary and secondary schools and demand for the refund of your school fees. You failed. Absolutely

Fahdiga:
Pls go back to your primary and secondary schools and demand for the refund of your school fees. You failed. Absolutely

Get your refund from Peter Obi

after4:
and when did english become the biafran official language? if no be inferiority complex dey worry you, wetin make english take betterpass pidgin, igbo or any language in its shit hole wey make you dey use am as standard to yab biafrans?

Eeyah, sorry o

A very good job that addresses the issue straight. Not the one lecturing us about tax evasion or avoidance. Let the intellectual debate begin. The writer has raised salient questions. Let the Premium Times address them. No tribal banters, no name calling, just pure intellectual discourse.

Peter okwute obi is simply innocent. Tainted 2023 politicians should stop trying to taint him

Having gone through the reports and the report earlier posted. I don't think Obi did wrong by trying to prune down the taxes he liable to pay. Every businessman wants to incur less tax. It's common sense and it's something I'd do if I were him, where I'll be mad with him was if those companies he had was set up while in government house or public funds was involved. But heard he well established before venturing into government, if that's the case, then he shouldn't bother his head trying to convince folks who are determined to get him down

Ok

Hmm...

[s]

Fahdiga:
Even though I hate Peter Obi because of the Ezu river massacre but this is a one sided investigation aimed at soiling his name. He might be guilty of the offence but where are Tinubu's of this world? Many curropt fellows like him are roaming around unabated in Nigeria. Fighting corruption should be holistically and not witchhunting based on ethnic and religious creed. My one cent

[/s]

Enough of the noise. If the authority thinks he's committed a crime, arrest and penalize him according to the law already. Make person hear word abeg

[s]

Fahdiga:
This one is definitely suffering from deficiency in English language. You are the illiterate here for not recognizing my good English language. I de shame on your behalf

[/s]

Criminal. Aside this, Peter Obi is a fraud.

Someone who as a Governor invested State fund in the name of his family.

This is the fraud Ndi Igbo packaged for us.

This isn't a case of theft or embezzlement of public funds...
Even the timeline of these events predates his ascension as governor...

All politicians are muddy crooks, but Peter Obi garment still has white in it

[s]

Academicwizman:
A very good job that addresses the issue straight. Not the one lecturing us about tax evasion or avoidance. Let the intellectual debate begin. The writer has raised salient questions. Let the Premium Times address them. No tribal banters, no name calling, just pure intellectual discourse.

[/s]