Court Orders Seal Of Union Bank Premises Over N19.3m Tax Liability

The Kaduna State Internal Revenue Service on Friday obtained a court
warrant to seal the premises of Union Bank Plc in Kaduna over non
remittance of N19.3 million.

The money is outstanding Pay As You Earn (PAYE) tax liability for 2014.

The revenue service had on February 8 dragged the bank before Justice
Gideon Kurada of a Kaduna High Court for the non remittance of tax
liability to the tune of N19.3 million.

The counsel to the revenue service, Francis Kozah, told the court that
the service conducted PAYE tax audit on the bank for 2014.

Mr. Kozah said that following the audit, the service issued a demand
notice for the outstanding PAYE tax in November 2015, and demanded
payment within seven working days.

He added that after exhausting all avenues of administrative redress,
his client issued Union Bank a notice of intention to seal the premises
as required by Section 104 of the Personal Income Tax Act as amended,
2011.

The counsel prayed the court for an order granting the service a warrant
to seal the premises of the bank for not settling the outstanding tax
liability.
Koza hinged his application on Section 104(3) and (4) of the Personal
Income Tax Act as amended 2011, and Section 37(3) and (4) of the Kaduna
State Tax (Codification and Consolidation) Law, 2016.

The sections provided that an applicant can seek for such order if a tax payer defaulted in the payment of assess tax.

In his ruling, Justice Kurada said that upon the facts presented by the
applicant, there was merit in the application and it was granted.

“The applicant is hereby granted a warrant to seal the premises of Union
Bank Plc in Kaduna for not settling outstanding PAYE tax liability.”

NAN