The Kaduna State Internal Revenue Service (KADIRS) has sealed the premises of five banks and several businesses in Kaduna over unpaid Land Use Charge (LUC) debts amounting to N1.7 billion.
The affected financial institutions include Keystone Bank Plc, Unity Bank, First City Monument Bank (FCMB), Zenith Bank, and the Bank of Agriculture. Other establishments affected by the enforcement include Hamdala Hotel, Chicken Republic, Forte Oil, New Nigeria Development Company, the GT Bank parking lot, and A.G. Leventis building.
Addressing journalists on Monday, KADIRS’ board secretary and legal adviser, Aysha Ahmad, explained that the enforcement exercise followed legal provisions outlined in Section 104 of the Personal Income Tax Act and Section 24 (1, 2, and 3) of the Kaduna State Tax Codification and Consolidation Law, 2020, as amended.
According to Ms Ahmad, the action was necessitated by the companies’ failure to respond to demand notices sent by the Kaduna State Geographic Information Service (KADGIS), which established the accumulated land-based revenue liabilities.
“We sent demand notices to these businesses, but there was no positive response or compliance. As a result, we had to resort to enforcement to recover what is due to the state,” Ms Ahmad said.
She noted that the sealed Hamdala Hotel alone owed N115 million in unpaid LUC charges.
Ms Ahmad disclosed that a court order had been secured for the immediate closure and takeover of the affected properties until the outstanding debts are fully settled.
The week-long exercise, she added, is part of a broader effort to ensure compliance across major cities in the state.
The KADIRS official urged taxpayers to comply voluntarily, warning that the agency would not relent in its efforts to recover revenue owed to the state.
“This enforcement will cover all major cities in Kaduna State, and we advise taxpayers to settle their obligations promptly to avoid disruption of their operations,” she said.
The revenue agency’s clampdown highlights the government’s resolve to address revenue leakages and ensure businesses fulfill their statutory obligations.
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