Kano State Internal Revenue Service has sealed four branches of a new generation bank as well as its regional office in the state over alleged tax invasion.
KIRS team led security personnel on Tuesday to evict staff and customers of the bank at Murtala Muhammed Way, Wapa, Zaria Road, Bachirawa and France Road branches.
Shortly after the exercise, Legal Director of KIRS, Bashir Madobi, told newsmen that the Kano government was compelled to seal the bank after securing an ex parte order to that effect.
The bank, Madobi alleged, evaded tax of over N1bn in six years.
He insisted that the financial institution turned down several invitations for amicable settlement of the matter.
“What irritated us to take this action is that right from the initial stage, we demanded some documents from them, which they failed to give us.
“As revenue authority, KIRS is saddled with the responsibility of enforcing payment of due taxes. So, we decided to file this case before the High Court on ex parte application,” he stated.
According to him, KIRS presented the case before the court with all the evidences, and the court certified that the tax was due.
“Based on that, it granted us judgment that we should go and seal the property of the bank. This is why we went there today to enforce the judgment and the payment of due tax as provided under the extant revenue laws.”
He said KIRS might consider unsealing the branches, if the bank could offset, at least, 25 per cent of the liability.
The new generation bank is also expected to pay 10 per cent of the debt as penalty for defaulting.
However, top officials of the sealed branches declined to comment on the matter, insisting they could not speak with the press without authorisation from the Lagos headquarters.
