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🇳🇬 Nigeria /Economy & Trade

Cross River State Seals Agencies Over N154 Million Tax Debt

From The Punch · (3h ago) English Critical tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • The Cross River State Internal Revenue Service has sealed the Cross River Basin Development Authority and the Federal Neuropsychiatric Hospital in Calabar over N154 million in unpaid tax debts.
  • The Basin Authority owes over N53 million for the period between 2019 and 2021, while the hospital is indebted to the tune of over N101 million for 2022-2023.
  • This action is part of an intensified revenue drive by state governments to improve internally generated revenue and enforce tax compliance.

In a decisive move to bolster state revenue, the Cross River State Internal Revenue Service (IRS) has clamped down on two key institutions, the Cross River Basin Development Authority and the Federal Neuropsychiatric Hospital, Calabar, for significant tax defaults. The total outstanding debt amounts to a staggering N154 million, highlighting a serious lapse in fiscal responsibility by these government-linked entities.

The Basin Authority is indebted to the Cross River State Government to the tune of over N53m and this liability arose as a result of a tax audit exercise carried out for the period 2019 to 2021.

— Ayi BasseyExplaining the tax debt of the Cross River Basin Development Authority.

The Cross River Basin Development Authority is reported to be owing over N53 million, accumulated between 2019 and 2021. This debt arose from a tax audit, and despite multiple notices, including assessment and demand notices, the authority failed to respond or settle its obligations. The IRS's Director of Compliance, Ayi Bassey, emphasized that the enforcement action was a last resort after all attempts at amicable resolution were ignored.

Several notices had been served on the management of that institution without any response. We even went further for a pre-distrain visit all in an effort to see how these liabilities could be sorted out amicably, but they refused to come forth. That is why we took this action.

— Ayi BasseyDetailing the IRS's attempts to resolve the debt before sealing the premises.

Similarly, the Federal Neuropsychiatric Hospital, Calabar, faces a substantial liability of over N101 million. This debt comprises unremitted Pay-As-You-Earn and withholding taxes for the period between 2022 and 2023. The hospital, too, had been served with various notices, including assessment and demand notices, and even a pre-action notice, yet remained non-compliant. The IRS had to conduct a pre-distrain visit, and despite the hospital's written request for liability computation, no amicable settlement was reached within the stipulated timeframe.

The Federal Neuropsychiatric Hospital, Calabar, owed over N101m in unremitted Pay-As-You-Earn and withholding taxes covering the period between 2022 and 2023.

— Ayi BasseyStating the tax liabilities of the Federal Neuropsychiatric Hospital.

This enforcement action by the Cross River State IRS is emblematic of a broader trend across Nigerian states, where authorities are intensifying efforts to enhance internally generated revenue (IGR). In an era of fluctuating federal allocations, states are increasingly compelled to explore all avenues to improve their financial standing and ensure the effective delivery of public services. The sealing of premises and distraint of property have become common tools employed by tax authorities to compel compliance from defaulting institutions, both public and private. The message is clear: tax obligations must be met, and non-compliance will have tangible consequences.

The enforcement became necessary because taxes deducted from workers’ salaries were expected to be remitted to the relevant sta

— Emmanuel EsirahJustifying the enforcement action due to non-remittance of deducted taxes.
DistantNews Editorial

Originally published by The Punch in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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