Home News KADIRS lists Ten Banks for Closure

KADIRS lists Ten Banks for Closure

The banks that the warning is being issued to include Zenith Bank, Diamond Bank, United Bank for Africa (UBA), Ecobank, Skye Bank, Heritage Bank, Unity Bank, Access Bank, Union Bank and Fidelity Bank.

607
0
kadirs-logo

KADIRS; the Kaduna State Internal Revenue Service has issued a one week notice to several commercial banks operating within the state to pay the money owed to Kaduna State Government or face closure. The KADIRS declared that the banks are to remit a total of fees exceeding two billion naira within a week or face the music.

The legal adviser to KADIRS, Francis Kozah told news men that the sum of N2.3 billion demanded by the revenue agency was the withholding tax that these banks have not paid the Kaduna State government. These payments ought to have been made between 2011 and 2016 but these banks have still not made these payments.

“We have already commenced the legal process to recover the amount through a written notification to the affected banks operating within the city centre,” Francis Kozah said. “The assessment period is 2011-2016 and the value of the assessment cumulatively is N2.3 billion. So, this is the amount of money we are expected to collect as withholding tax of interest from the banks for the period. Withholding tax of interest is a tax that is recognized by the personal income tax act as amended in 2011. The tax emanates from the federal legislation and accrues to the states.”

 “So the banks that operate in the state are by this law bound to deduct this tax and remit to the government of that state and this is what they have failed to do. As I said as required by law, we initiated the process by requesting for certain documents from them that will enable us to complete our tax audit on these banks. Some of them supplied part of the information, others did not, so what we did was, we now called a meeting to reconcile our position with them.”

“We came with them, we held meetings with them and we agreed at such meetings that we are going to give them some leverage, sometimes, some grace period to enable them supply the information that will enable us perfect and rap up this agreement. We entered into written resolution with them and their consultants, they failed to abide by the written agreement and so, failing which our assessment becomes final. So we have reached a stage, we are now taking our assessments as final and conclusive,” the KADIRS official said.

The banks that the warning is being issued to include Zenith Bank, Diamond Bank, United Bank for Africa (UBA), Ecobank, Skye Bank, Heritage Bank, Unity Bank, Access Bank, Union Bank and Fidelity Bank. Mr. Kozah said the affected banks had been given two weeks ultimatum to initiate payment to the KADIRS or risk being sealed off by the state government.