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Kaduna seals Keystone, FCMB banks over N294.8m taxes

Kaduna seals Keystone, FCMB banks over N294.8m taxes

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The Kaduna State Internal Revenue Service (KDIRS) on Tuesday sealed off Keystone Bank and First City Monument Bank (FCMB) branches in Kaduna metropolis over unremitted taxes.

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The banks, according to the revenue agency, were closed for failure to remit taxes accrued to the tune of N294.85m to the state government agency.

The banks’ branches at Bank Road, Ahmadu Bello Way, Yakubu Gowon Way, Ali Akilu Road and Kachia road were sealed off as early as 7:00am by officials of the revenue agency.

The Executive Chairman of the agency, Dr Zaid Abubakar told journalists after the exercise, that the banks’ branches were sealed off for failing to remit Pay-As-You-Earn (PAYE) and withholding tax.

He explained that the Keystone Bank branches were sealed off for failure to remit PAYE and all withholding tax except withholding tax on interests, between 2007 and 2016, amounting to N222.8 million.

He added that FCMB branches were also closed for withholding tax on interest from 2007 to 2018, which amounted to over N72 million.

According to him: “We carried out the tax audit along with the banks’ officials; sent them our report, assessment and demand notices.

“KDIRS wrote to the banks’ management several times, but they refused to come for reconciliation and failed to respond to our demand notices.

“Therefore, we had no option but to seal off the branches according to relevant tax laws.

“Keystone Bank branches were sealed off for failure to remit PAYE and all withholding tax except withholding tax on interests, between 2007 and 2016, amounting to N222.8 million.

“FCMB branches were also closed for withholding tax on interest from 2007 to 2018, which amounted to over N72 million.

“When you put these together, the total liabilities amounted to N294.85 million, which we want them to pay,” he explained.

Also speaking, KDIRS Secretary and Legal Adviser, Mr Francis Kozah, said that the banks have a 14-day window to remit all the tax liabilities.

He said if they fail to pay within the next 14 days, the agency would sell off their movable assets to recover the taxes due to the state.

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