The Enugu State government through its Internal Revenue Service board on Friday sealed up about 40 commercial banks, hotels, hospitals, schools, among other facilities operating in the state capital Enugu, over tax evasion.
It said the action was in compliance with court orders, which granted the government the powers to carried out distrainment of the affected facilities for refusal of their owners to pay withholding taxes, such as pay as you go PAYE tax, Land Use Charge and another development levy to the state government.
Speaking to newsmen shortly after the operation which was carried out by officers of the agency accompanied by security operatives, Chairman of the board, Mr. Emeka Odo, hinted that over 3000 properties across the state owe the state government various degrees of taxes despite repeated reminders for them to pay.
Odo who added that the total debt to be recovered was over N2.5 billion, regretted that “the affected commercial establishments and some private institutions have refused to remit taxes they deducted, to the Enugu State Government.”
The chairman further disclosed that 37 institutions were affected in the year-end enforcement on recalcitrant tax defaulters which was carried out in the early hours of Friday.
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According to him, the debts included those of land use charges stressing that more of the defaulting institutions would be sealed in the coming days.
He said the exercise involves the distrainment of a number of commercial establishments, banks, and some private institutions.
“They have refused to remit to the state government taxes they deducted from clients, staffers and others'” he said.
Speaking further, he said “We have also appointed receiver managers over some commercial properties whose owners have refused to pay Land Use Charge to Enugu State government, despite repeated reminders.
“This exercise is pursuant to an ex-parte order from the High Court of Enugu State. It is expected that over 3000 properties will be affected by the work of the receiver managers.”
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