The Federal Inland Revenue Service yesterday shut down three companies in Kano State namely Kabo Airlines, Monaco Ventures Limited and Paki International Motors, all in Kano, over failure to make payment of their tax liabilities.
According to Premium Times, Kabo Airlines was said to owing tax liabilities to the sum of N149,707,949.03 from the assessment year of 2004 to 2013. Speaking with the press, the Head of tax enforcement team, Garba Kana stated that the tax liabilities accrued to the Airlines ranges from Companies Income tax to Education Tax, a position that led to FIRS sealing off the premises of the airlines.
The FIRS also sealed off the Prince Hotel over tax liabilities to the tune of N8,359, 680.76 from 2014 to 2016. While the Hotel Management pleaded that the tax evasion was due to non- disclosure by the tax consultants, they however promised the FIRS that 50% of the liabilities would be remitted as soon as possible while the outstanding remittances would be made in April 2017.
Paki International Motors owing a Company Income tax liabilities to the tune of N51,148,117.57 was also sealed off. The FIRS informed that the liabilities ranged from 2008 to 2014.
The team also paid a visit to Phamadex Nigeria Limited and Monaco Ventures Limited in Kano State. Phamadex was said to be owing Withholding tax liabilities of N572,331,.72 from 2014 to 2015 assessment year. Despite presenting their evidence of tax payment to the FIRS official, it was noticed that penalties and Interest accrued had not been paid. The FIRS official therefore gave the company a 24 hour ultimatum to effect the payment of all outstanding penalty and Interest.
Monaco Ventures Limited was sealed based on a Education Tax (ET) liability of N385,922.50.
This monitoring exercise is not only for Kano State alone as it would continue in other parts of the country, and since the drop in the revenue generated from oil in Nigeria. The Federal Government had focused more on generation of revenue through tax.