The Kaduna State Internal Revenue Service on Tuesday took a drastic measure to recover N1.7bn debt for a ‘Land Use Charge’ (LUC) owed by five banks and other businesses operating in the state.
The KADIRS sealed the premises of Keystone Bank Plc, Unity Bank, FCMB, Zenith Bank, Bank of Agriculture (BOA), and Chicken Republic, all located along Yakubu Gowon Way.
Other businesses affected by the seal include Forte Oil, New Nigeria Development Company, GT Bank parking lot, and A.G. Leventis building.
The prominent Hamdala Hotel was also sealed for a N115 million debt on Land Use Charge.
Speaking with newsmen shortly after the exercise, Aisha Ahmad, KADIRS’s Board Secretary and Legal Adviser, said the enforcement exercise was based on the provisions of the law.
She said that the enforcement was in the exercise of powers vested in KADIRS by Section 104 of the Personal Income Tax Act.
Ahmad added that the exercise was also backed by Section 24 Sub-Sections (1,2 and 3) of the Kaduna State Tax Codification and Consolidation Law, 2020 as amended.
She explained that the accumulated land-based revenue liabilities were established by the Kaduna State Geographic Information Service (KADGIS), adding that demand notices were sent to the businesses, which did not yield positive responses or compliance.
“We have been left with no choice but to take this drastic measure to recover the debt owed to the state. We have sent several demand notices to these businesses, but they have refused to comply.
“We are not going to be intimidated by anyone or any organization. We will continue to take all necessary measures to recover the debt owed to the state,” Ahmad added.
The KADIRS board secretary disclosed that the exercise would be a week-long one, and “a court order for the immediate closure and taking over of the entire properties until all unpaid land-based revenue liabilities are settled had been secured.”