AKIRS seals banks over refusal to pay N228.6m tax arrears

Ini Billie, Uyo

The Akwa Ibom State Internal Revenue Service (AKIRS) has sealed Keystone and Heritage banks over failure to pay N228. 6million tax arrears.

It was gathered that the agency sealed the banks located along Abak Road on Thursday as they failed to settle their arrears of tax liabilities in the state.

The Executive Director of Enforcement and Debt Recovery of AKIRS Board, Mr Leo Umana, said the sealing of the banks was in compliance with its enforcement drive.

Umana explained that HeritageBankk owed N100,270,910 million, while Keystone Bank owed N128,413,882 million, adding that the banks were sealed following an ex-parte order of Notice of Distrain obtained by the State Revenue Service from Akwa Ibom State High Court, Uyo Division.

“The court order was signed by Hon. Justice Effiong Effiong who ordered that access to the bank premises and its facilities be restricted,” he said.

According to the court order, the two banks have not been remitting actual tax from employee salaries as well as other taxes meant for the state.

The order of the court read: “The banks have not been remitting the actual tax deductible from its employees’ salaries and other relevant taxes due to the State; hence failed to comply with the provisions of relevant tax laws”.

Umana revealed that the banks were given warning notices but failed to comply after several months, noting that AKIRS had exhausted reconciliation and negotiation opportunities with the organisations before it opted for the court.

He further said the banks’ management refused to remit taxes accruing to the State despite the long period of time given them, hence, the agency’s decision to secure the ex parte order as a move to recover the government’s revenue.

He explained that under the law, the banks have 14 days to negotiate with AKIRS and vacate the order, saying the ongoing enforcement drive of AKIRS is aimed at recovering the government’s revenue and assisting the state to realise its A-R-I-S-E agenda.

“If after 14 days, they do not comply, we have the mandate of the court to sell the property and recover the tax owed the State,” he said.