Noah Ebije, Kaduna
The Kaduna State Internal Revenue Service (KDIRS) has shut three branches of Access Bank for non-remittance of N175 million Pay-As-You-Earn (PAYE) and withholding taxes.
The banks located along Bida Road, Ahmadu Bello Way and Isa Kaita Road and were sealed-off early yesterday.
KDIRS Secretary and Legal Adviser, Mr. Francis Kozah, said the bank branches were shut following an audit carried between 2011 and 2016 that revealed the state was being shortchanged. Kozah said the three branches of the bank would remain closed until they remit all taxes due to the state.
“We conducted a tax audit from 2011 to 2016 which revealed that Access Bank has not been remitting PAYE and withholding taxes, and we were able to establish an unremitting liability of PAYE and withholding taxes of over N175 million within the period,” said Kozah.
“KDIRS communicated to Access Bank the findings, made demand for payment and held several meetings with its management; but they refused to pay. We are left with no other option, but to approach the court for a warrant to restrain the bank, and the court granted the order to seal off all the branches in the state.’’
He said corporate organisations, professional bodies, and business establishments in the state should settle all tax issues or risk being shut down.
Head of Enforcement for KDIRS, Ado Garba, said the agency was auditing tax records of corporate entities, and individuals, and that defaulters would be persecuted.
“We are open to negotiation with Access Bank, but I assure you that we will only open the branches if they settle tax liabilities, including the N250,000 incurred in sealing the branches,” Garba said.
Executive Chairman, KDRIS, Dr. Zaid Abubakar, warned: “We will not continue to watch while businesses operating in the state sit on government money and wont pay their taxes.”
The shut down of three branches of Access Bank has sent panic to other banks in the state.