The Kwara State Internal Revenue Service (KW-IRS) has sealed two branches of Skye Bank in Ilorin for non-remittance of withholding taxes and other statutory charges of over N30milion to the state government. The Director, Legal and Enforcement, Lateef Okandeji, Esq. who led the team on Wednesday said the action followed a judgment delivered on 22nd January 2018.
He explained that withholding tax is a 10 per cent charge on interests, dividends and rents that companies collect on behalf of the government.
Okandeji said that the Bank had failed to remit statutory taxes, including withholding taxes on bank interest for 2 years in the sum of Thirty Million, Sixty Eight Thousand, Four Hundred and Seventy One Naira (N30, 068, 471.22).
He explained that the action was the last resort after series of dialogue with officials of Skye Bank on their outstanding established liability on Withholding Tax on Bank Interest for the years 2013 and 2014 failed to yield results.
The Director noted that the Agency had resorted to lawful means to ensure compliance with statutory tax remittances, warning that any company found to have evaded tax would not be spared.
