The Osun State Government on Thursday sealed off two new generational banks, WEMA Bank and Unity Bank, over refusal to pay taxes and other levies due to the State.
Shut down alongside the banks was popular private university, Joseph Ayo Babalola University, situated at Ikeji Arakeji.
The incident, according to our correspondent, paralysed business activities at the banks.
The two affected banks as well as the University were said to have remained adamant to offset the outstanding taxes amounting to N42 million which they owed the state government.
Addressing journalists, the acting Chairman, Osun State Internal Revenue Service, Bicci Alli, said: “The affected companies left the State Government with no other option than to resort to closing down their premises after series of meetings held with them on the modality for the payment proved abortive.
“The distraining exercise will be continuous and extended to other banks and some other recalcitrant tax corporate and non-corporate payers found guilty of owing the state government, until all what is due to the state is recovered.
“The defaulters were properly served notices before the enforcement begun.
“The state is being owed about N30 billion as tax and levies.”
Alli further stated that the affected establishments were given notices and reminder of the need to pay up their taxes and levies due to the state, adding the agency approached the court to secure the notices and the need to pay up their taxes and levies due to the state saying the agency approached the court to secure order allowing it to seal off any defaulting establishments after the expiration of the notice.
The revenue boss, who added that after the secure of the court order, another ultimatum was given to allow them ample time to make payment to the coffer of the state.
Alli maintained that the State Government embarked on the action in order to boost its purse for the completion of various ongoing infrastructural projects across the state.
While noting that tax default is criminal, Alli said the government is not only enforcing payment of taxes, but to ensure compliance by all citizenry across the state.
“What the state is demanding from the people is not new taxes and levies, but existing ones,” Alli said, adding that the Governor, Rauf Aregbesola, wants to complete all ongoing projects and the only way to achieve this is through buoyant resources that could be generated internally.
He noted that Governor Aregbesola has zero tolerance for tax evasion, adding that the OSIRS is set to begin criminal prosecution of all tax defaulters in the state so as to ensure that culprits are made to face the full wrath of the law.
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