Tuesday, 18 November 2014

Ondo Seals off Zenith Bank Branches over Non-payment of N100m Tax

The Ondo State Board of Internal Revenue monday sealed off offices of Zenith Bank Plc in Akure and Ondo Town over failure of the bank to remit about N100 million tax due to the state government.
The sealing of the bank’s premises was carried out by the board officials led by the Director, Management Services, Legal and Enforcement Department, Mr. Emmanuel Akinmutimi, who was accompanied by security personnel.
However, when contacted, a source at bank who pleaded to remain anonymous said the matter would be resolved amicably.
The officials of the state agency were said to have stormed the banks premises as early as
6.30am to restrain the bank workers who had earlier reported for duty before gates and entrances leading to the banks were locked.
THISDAY gathered that the Court order, which was given to the workers to sign, was rejected prompting the board officials to paste it on the bank’s gates with the inscription ‘SEALED By Court Order Ondo State Board of Internal Revenue.’
Speaking on the development, Akinmutimi said: “Zenith Bank is one of our customers like all other financial institutions. Record however shows that over the years, the bank has not been remitting tax deductions to the Board of Internal Revenue.
"We opened correspondence with them but they did not respond. During our last visit, we gave them a notice of non-compliance, telling them that we intended to approach a court of competent jurisdiction to obtain order of restriction sealing off the bank.
“They did not oblige us. There and then we approached a court for an ex-parte motion asking us to seal-off the place for non-remittance of several millions of naira, not even ten or twenty millions to the state.”
He added: "The federal government is encouraging state governments to look inward for revenue generation to develop their states now that revenue coming from Federation Account is nose diving by virtue of dwindling oil fortunes and Zenith Bank is owing over N100 million naira, which is a huge sum of money.
"There is a lot the government can do with such amount of money.”

Thisday

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