In a move that underscores the Kaduna Internal Revenue Service's (KADIRS) commitment to enforcing tax compliance, United Bank for Africa (UBA) branches in the state metropolis have been sealed due to purported non-payment of taxes amounting to N14.3 million. The decision, made public on Wednesday by Hajiya Aysha Ahmad, the Board Secretary/Legal Adviser of KADIRS, reflects the agency's dedication to upholding tax regulations and ensuring revenue collection for the state's development.
Ahmad provided comprehensive insights into the enforcement action, citing repeated attempts by KADIRS to engage with UBA regarding the outstanding tax liability. Despite the issuance of numerous demand notices and efforts to communicate the urgency of tax compliance, the financial institution reportedly remained recalcitrant, leaving KADIRS with no recourse but to enforce closure on the premises.
The enforcement measures, according to Ahmad, are not punitive but rather intended to compel voluntary compliance with tax obligations. She emphasized that once the defaulters settle their outstanding taxes, KADIRS would promptly unseal the affected UBA branches, thereby restoring normal operations.
Furthermore, Ahmad elaborated on the broader context of the revenue service's objectives, highlighting the ambitious N120 billion revenue target set by the Kaduna State Government. The sealing of UBA branches represents just one facet of KADIRS' strategy to achieve this target, with plans in place to pursue all other defaulters to ensure full compliance with tax laws.
Responding to queries about the legality of the enforcement action, Ahmad clarified that KADIRS had meticulously followed due process throughout the engagement with UBA. She noted that despite legal proceedings, including court directives for assessment review, the defaulters persisted in their non-compliance, necessitating the enforcement measures undertaken by the revenue service.
In her appeal to the citizens of Kaduna State, Ahmad emphasized the importance of voluntary tax compliance, framing it as a civic responsibility essential for the state's progress and development. She underscored the significant role played by tax revenue in funding essential public services and infrastructure projects, urging all residents to fulfill their obligations to contribute to the state's socio-economic advancement.
The sealing of UBA branches serves as a clear signal of KADIRS' resolve to ensure tax compliance across the state, setting a precedent for stringent enforcement measures against defaulters. As the revenue service continues its efforts to meet the ambitious revenue target set by the state government, the spotlight remains on the importance of tax compliance in driving sustainable development and prosperity in Kaduna State.
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