The Kano State Internal Revenue Service (KIRS) on Monday sealed the head office of Nigerian airline, Max Air Limited and two other companies in Kano over unpaid liability taxes spanning several years.
Max Air, a prominent airline company, was shut down for allegedly failing to settle taxes owed between 2012 and 2017.
The head office of Dantata and Sawoe Construction Company, located along the Kano-Zaria road, was also sealed for allegedly refusing to pay N241.2 million in Pay-As-You-Earn (PAYE) and withholding taxes for 2021 and 2022.
Similarly, Northern Rice and Oil Milling Nigeria Ltd at Gunduwawa Industrial Estate was closed due to a N600,000 tax liability.
Ibrahim Abdullahi, the Director of Debt Management and Enforcement at the Kano Internal Revenue Service (KIRS), stated during a press briefing following the operation that the closures were carried out after the companies repeatedly failed to comply with notifications to settle their outstanding tax debts.
“This action was taken following a court order secured by the agency. These companies were given ample opportunity to settle their liabilities, but they refused to comply, leaving us no choice but to seal their premises,” Abdullahi said.
He stated, “We conducted an enforcement operation to ensure that all tax liabilities are paid promptly, as discrepancies in tax payments were identified by our enforcement team.
“The agency deemed it necessary to take this step to compel compliance after several correspondences failed to yield positive responses from the affected parties.
“This action is also crucial to ensure that all revenue due to the state is collected, thereby strengthening the state’s revenue base.”
Abdullahi added that similar enforcement exercises would continue to remind tax defaulters of their obligations.
He further stated that the sealed companies would remain closed until they settle their outstanding debts.
