The Kano State Government is on the move again. The revenue-generating agency has joined the host of other state governments in an aggressive revenue drive intending to shore up the ever-dwindling national resources.
This conjecture is on the premise of its recent activities as no one was spared, both customers and operators when the Kano State Internal Revenue Service, KIRS sealed five branches of Guaranty Trust Bank, GTB over tax evasion. Customers became a victim as they were reported sealed within the premises, leaving them stranded.
Report has it that hundreds of customers who trooped to the affected branches for transactions earlier in the morning had to leave.
Taxmobile.Online gathered that KIRS went on this rampage today, Tuesday 13th April 2021 looking for tax defaulters with GTB been the chief of them. The agency explained that the closure of the bank’s branches is in line with an order issued by Kano State High Court over the bank’s failure to pay its taxes over the years.
It was also discovered the defaulting period was between 2014 and 2019, affecting GTB branches in Murtala Muhammad Way, Wapa, Zaria Road, Bachirawa, and France Road.
The Legal Director of the agency, Barrister Bashir Yusuf Madobi, during the exercise, enlightened that the affected GT bank branches have refused to pay the amount accruing to ₦1,005,687,755.55 or release some of their audit reports, forcing the agency to take such stringent action.
On the condition for reopening the sealed branches, KIRS said the bank must pay a minimum of 25 percent of the liability and provide the earlier requested documents.
The bank is also expected to pay 10 percent of the total revenue amount as provided for any taxpayer who refuses to pay until the matter gets to court.
In the words of the team lead and Legal Director of the agency, Barrister Bashir Yusuf Madobi,
“What irritated us to take this action is that right from the initial stage, we demanded some documents from them which they failed to honour us and give us the documents.
“As a revenue authority, KIRS is saddled with the responsibility of enforcing payment of taxes. One of the procedures we follow to enforce payment of due tax is by instituting a court case before a competent court. So, we decided to file this case before the State High Court on ex parte application.
“So, we the KIRS as plaintiff after furnishing the court with all the evidence, the court satisfied that the tax is due, and based on that, it granted us judgement that we should go and seal the property of GT Bank.
“This is why we went there today to enforce the judgment and enforce the payment of due tax as provided under the extant revenue laws. “The money is over N1bn. The next line of action is for them to come so that we sit down and sort it out if they are willing to do so,” Barrister Madobi said.
In a similar scenario, Taxmobile.Online had reported in February 2021 that the Ekiti State Internal Revenue Service, according to a viral video on social media locked pupils within a private school premise during a seal-up exercise of the school for failing to pay taxes to the state government.
The report revealed that government officials accused the school management of failing to pay the mandatory income tax to the coffers of the government leading to the sealing.