The Kano State Internal Revenue Service took strong action on Monday, closing down three companies for failing to pay their taxes over several years. This includes the main office of Max Air Limited, which hadn’t paid its tax liabilities from 2012 to 2017.
The agency also shut down the headquarters of Dantata and Sawoe Construction Company, located on the Kano-Zaria Road. This company refused to pay N241.2 million in employee taxes and withholding taxes for the years 2021 and 2022. Additionally, they sealed Northern Rice and Oil Milling Nigeria Limited at the Gunduwawa Industrial Estate.
Ibrahim Abdullahi, the agency’s Director of Debt Management and Enforcement, explained these closures happened after obtaining a court order. “We went out to enforce the payment of tax liabilities to make sure all liability taxes are paid as at when due as we have a classification of taxes because our enforcement team found out there are discrepancies in the payment of the taxes,” he said.
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Abdullahi emphasised that the decision came after multiple unsuccessful attempts to communicate with these companies. “So, the agency found it necessary to take the measure to compel them to pay such taxes after several correspondences without positive responses from them,” he added.
The director made it clear that these companies would remain closed until they fully paid their outstanding tax debts. He also stated that this action was crucial for improving the state’s revenue and that similar enforcement actions would continue to remind tax defaulters of their responsibilities.
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