Osun State Internal Revenue Service (OIRS) on Wednesday sealed off premises of four banks in Osogbo for allegedly failing to remit over N72 million withholding taxes due to the state.
The affected banks are Diamond Bank PLC, First City Monument Bank (FCMB) and Guaranty Trust Bank (GTB) and Fidelity Bank PLC have their branches in Osogbo, Osun state capital.
The Withholding Tax due to the state government, according to the details made available by Osun Internal Revenue Service (OIRS), is N72,932,717.72 which was said to have accrued between years 2012 and 2014.
Speaking to newsmen shortly after the banks were been sealed off, the Acting Chairman, Bicci Ali, explained that the move was accordance to the provisions of Section 104 of the personal Income Tax Act 2004 LFN (as amended in 2011), adding that the banks would not be re-opened for business until all unremitted taxes are paid.
Alli added that OIRS had intensified its advocacy, publicity and enlightenment programmes on the statutory obligations of the citizenry to voluntarily comply by paying their taxes, levies and other charges promptly as prescribed in the constitution of the country and the applicable tax legislations.
But in spite of the efforts, Alli said many corporate organizations and individuals still default.
“Under the Tax Act, a taxable person is statutorily required to file a return of income tax for the preceding year at the expiration of 90 days from the commencement of every year of assessment.
“A taxable person or corporate organizations who have not filed their tax returns with OIRS by the stipulated date is in breach of the provisions of the law, which is an offence that is punishable under the tax laws”, Alli concluded.