The Kaduna State Internal Revenue Service, KADIRS, had on Thursday closed off two hotels, an event centre and other business premises within the Kaduna metropolis due to unpaid taxes amounting to about N422.6 million.
It was reported that the cordoned off business premises were Seals Admiralty Naval Suites owned by the company, Navy Travels and Tours, Abuja, and Deluxe Suites which was located at Ali Akilu Road, Kaduna.
The other sealed businesses were Big City Event Centre, Bijo Surgical & Scientific Limited, Zedvance Finance Limited, TXTLight Power Solution, Lek Dental & Maxillofacial Hospital, Azaka, and Enyo filling station, to mention but a few.
Aysha Ahmad, the KADIRS Board Secretary and Legal Advisor, had said that the exercise was done with the aim of administering compliance by the businesses that failed to carry out their civic responsibility of paying tax.
Ahmad further stressed that KADIRS got no happiness in sealing the properties of tax defaulters but it was something they had to do to force compliance.
Finally, she called on the people of the state to guarantee voluntary tax compliance, expounding it as a civic responsibility.
Why It Matters:
The closure of hotels, event centers, and other businesses in Kaduna was because of their failure to fulfill their tax obligations, totaling a whopping sum of N422.6 million.
And while they acknowledged the unpleasantness of the situation, KADIRS emphasized that sealing properties was a necessary step to compel compliance from defaulting businesses, demonstrating the seriousness of tax enforcement efforts.
Bottom Line:
Tax compliance is essential for businesses operations anywhere, as non-payment can lead to legal repercussions such as property closure.
The enforcement actions taken by KADIRS highlights the importance of fulfilling tax obligations to support the state’s development and infrastructure.
