In a dramatic move aimed at enforcing tax compliance, the Kaduna State Internal Revenue Service (KADIRS) recently sealed off multiple businesses, including banks, restaurants, and hotels, for failing to pay Land Use Taxes. This bold action comes after a long period of non-payment, with tax liabilities totaling over N100 billion.
The businesses affected by this tax enforcement action are all located along Yakubu Gowon Way in Kaduna. They include some well-known names in the banking and hospitality sectors:
- Bank of Agriculture (BOA)
- First City Monument Bank (FCMB)
- Unity Bank
- Chicken Republic (a popular fast-food chain)
- Hamdala Hotel
These businesses, despite several warnings and attempts to resolve the matter through legal channels, failed to settle their outstanding Land Use Taxes, which led to the agency’s decision to seal their premises.
The closure of these businesses was led by Barrister Aisha Ahmad, the Board Secretary and Executive Director of Legal Services at KADIRS. In a statement, she explained that the businesses had been given ample time to address their tax liabilities but had failed to comply. According to Ahmad, the tax debt had accumulated over a long period, and the failure to resolve the issue through available legal means left the agency with no choice but to take enforcement action.
“We have explored all available avenues to ensure these businesses pay their taxes, but they have consistently ignored the required legal obligations. This action was taken as a last resort,” said Barrister Ahmad.
The businesses in question are responsible for unpaid Land Use Taxes, which are taxes levied on the use of land within the state. The total amount of unpaid taxes for these businesses exceeds N100 billion. Land Use Taxes are a significant source of revenue for the state, and the government has stressed that compliance with tax laws is critical for the development of the region.
The revenue agency’s action highlights the seriousness with which the government is now treating tax evasion. The failure of these businesses to settle their liabilities despite repeated notices shows a disregard for local laws, prompting the enforcement team to take drastic steps.
KADIRS had initially attempted to resolve the issue through negotiations and legal notices, offering the businesses several opportunities to pay their taxes. However, after numerous failed attempts to engage the businesses, the agency moved to enforce the closure.
Barrister Ahmad noted that the agency had followed all legal processes before taking this drastic step, ensuring that the actions taken were in line with the law.
This shutdown serves as a strong warning to other businesses in Kaduna about the importance of adhering to tax laws. The state government is clearly sending a message that it will not tolerate tax evasion, and businesses operating within the region must fulfill their obligations to avoid similar penalties.
It is not just the businesses that are affected by non-payment of taxes; the entire state suffers. Taxes are critical for funding government services and infrastructure, and when businesses fail to pay their fair share, it undermines the growth and development of the region.
The closure of these businesses in Kaduna is a reminder of the need for businesses to remain diligent about paying taxes. While taxes may seem burdensome at times, they are essential for the economic health of a state. Tax revenues are used to build and maintain infrastructure, provide essential public services, and support development projects.
For businesses in Kaduna, this incident should serve as a clear signal that tax compliance is not optional. The government has shown that it is prepared to take strong actions against businesses that fail to meet their tax obligations.