IMO STATE BANKS CLOSED BECAUSE OF TAX CLEARANCE

Imo state Government in its bid to recover over N2 billion withholding tax owned to it by commercial banks operating in the state, Imo Government yesterday through its Board of Internal Revenue sealed up the premises of the eight defaulting banks in compliance of a court order.

 The affected commercial banks are the Zenith Bank, UBA, Union Bank, Diamond Bank, Keystone Bank, Enterprise Bank,Eco Bank, Fidelity Bank and First Bank.

Addressing newsmen, the state Commissioner for Internal Resources and Pension Affairs, Mr. Nick Opara-Ndudu, said the action was taken in compliance with a court order granted the board of internal revenue authorising it to distrain the operations of the banks after their failure to heed repeated demands of the board to fulfill their statutory obligations to the state.

“For the avoidance of doubt, the action was taken as a last resort and following non- -compliance with the provisions of the law by the affected financial institutions. This action of the internal revenue is intended to send a signal to all organisations and institutions operating in the state on the need for them to meet their statutory obligations to the state and its citizens.

“It is hoped that the affected institutions will take immediate steps to clear the liabilities owed to the state to allow them to continue doing business in the state.

“We have gone through our records and the affected banks are yet to pay their statutory taxes to the state government and when every entreaty to make them pay failed we had no other option but to go to court. So, it is not true that the state government imposed a levy on them, if their headquarters have paid the tax our records will show it,” he said.

Meanwhile, customers of the banks who had gone to the banks to carry out business transactions were turned back by the security guards.

Report from Charles Ogu states that customers who went to transact businesses yesterday were left unattended to following the closure of banks by their respective managements in solidarity with others, which were sealed on the orders of Imo State government over tax-related issues.

  The state government, through the Board of Internal Revenue (BIR), had exercised its powers by sealing the banks because of their alleged inability to remit withholding tax to the tune on N2 billion.

  The state Commissioner for Internal Revenue and Pension Matters, Nick Opara-Ndudu, said it was exercising the authority the court has given it to recover the N2 billion owed it by eight banks operating in the state: Diamond, United Bank for Africa (UBA), Zenith Bank, First Bank, Enterprise Bank, Ecobank, Fidelity Bank and Keystone Bank. 

  He maintained that the affected financial institutions owe the state government the stated amount, being withholding tax paid into their coffers over the years. He said that they either pay or forfeit doing businesses in the state. 

  Some workers of the non-affected banks told The Guardian that they joined the strike in solidarity, stating that they would remain closed to business until the parties resolved the issues.