After long patience and appeals to the tax defaulters to pay up on long overdue taxes, the Enugu State Board of Internal Revenue decided to carry out distrainment exercicise on four new generation banks and two other private companies.
The distrainment exercise was carried out after obtaining Court Orders, on Tuesday. The defaulting banks and the other two private companies are located in Enugu metropolis and Nsukka.
The Enugu govt took this action against the defaulting banks and private firms for non-payment of taxes due to the state government, totaling over N200 million.
The affected companies, according to the board’s Director of Back Duty Audit, Mr. Edwin Iyidiobi, who spoke to newsmen after the exercise, included; Robertson Nig. Ltd, Paladium Hotels Ltd., and four new generation banks.
Mr. Iyidiobi further disclosed that the private business establishments were owing the state the following amounts: Robertson Nig. Ltd (3.1m) and Paladium Hotels Ltd (N3m).
The Director stated that the detrainment exercise became imperative “after several failed appeals to these companies that are indebted to us”, adding that “they did not comply with our request and of course being law abiding citizens we had to ask for court’s assistance”.
He maintained that the exercise followed due process and was successful, saying: “We got Court Orders to seal off the affected companies, and distrain them until they pay what they owe the state government”.
Mr. Iyidiobi further explained that the taxes being owed the state government by the affected companies were in form of “unpaid PAYE; under-remitted PAYE; under-remitted Withholding Tax; under-remitted Development Levy and interests and penalties charged on the under-remitted taxes as provided by the law”.