The Kano State Internal Revenue Service (KIRS) has sealed three companies in Kano for failing to settle tax liabilities spanning several years.
Among the affected firms is the head office of Max Air Limited, which was shut down on Monday over unpaid taxes from 2012 to 2017.
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Two other companies were also affected: the head office of Dantata and Sawoe Construction Company, located along the Kano-Zaria road, for withholding N241.2 million in PAYE and withholding taxes for 2021 and 2022, and Northern Rice and Oil Milling Nigeria Ltd, situated at Gunduwawa Industrial Estate, over a N600,000 liability.
Speaking on the enforcement exercise, Ibrahim Abdullahi, Director of Debt Management and Enforcement at KIRS, explained that the action followed a court order and became necessary after repeated attempts to recover the debts proved unsuccessful.
โWe went out to enforce payment of tax liabilities to ensure all taxes are paid as and when due,โ Abdullahi stated. โOur enforcement team discovered discrepancies in the payment of taxes, and after several correspondences without positive responses, the agency found it necessary to take this measure to compel compliance.โ
He further highlighted the importance of tax collection for boosting the stateโs revenue. โThis measure ensures all revenue accruable to the state is collected to improve its revenue base,โ Abdullahi added.
The director emphasized that the sealed premises would remain closed until the respective companies settle their outstanding debts.
He also warned that similar enforcement actions would continue to remind tax defaulters of their obligations.