Why we sealed banks over tax default in Kaduna – Chairman | Dailytrust

Why we sealed banks over tax default in Kaduna – Chairman

The Executive Chairman of the Kaduna State Internal Revenue Service  (KADIRS), Zaid Abubakar on Tuesday disclosed that the agency sealed-off three branches each of the First City Monument Bank (FCMB) and Keystone Bank in the state over tax liabilities to the tune of N295 million.

Daily Trust recalls that the enforcement team of agency led by the Head of Enforcement, Ado Usman Garba in the early hours of Tuesday morning sealed-off the banks located in Sabon Tasha, Ali Akilu, Bank Road and Yakubu Gowan Way.

Our correspondent reports that FCMB is said to owe over N72 million, while Keystone is owing N220 million between 2007, 2016 and 2018.

Addressing newsmen after the raid, the chairman said the banks had been served with several notices of non-compliance and non-remitance of Pay As You Earn (PAYE) and withholding tax all to no avail.

According to him, “We served eight notices to FCMB and two to Keystone bank, but they were not forthcoming on the payment. That is why we had to approach the court to obtain an exparte order before Justice Binta Zubairu and Justice H. T.  Gwanda to put restraints on all the premises of the banks in question pending when they settle the outstanding PAYE and withholding  tax since they have not been able to come forward to make with the liabilities established against them despite the letters sent to them to come forward for reconciliation.

“The only option available to us based on Section 104 of Personal Income Service as well as Section 36 of Kaduna State Qualification and Consultation law is to move to the next phase of the collection process which is a force evict.”

He noted that the next line of action is for the banks to come forward and pay the liabilities and where they fail to do that within the next 14 days, “the agency will move to the next phase of the law possibly recovering our money from the assets.”

He advised other companies who have similar cases to reconcile their tax or liabilities saying, “In as much as the liabilities are established and it is found to be genuine, they have no other option but to pay.”

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