In a move disrupting financial services in the state capital, the Kaduna Internal Revenue Service (KADIRS) sealed all United Bank for Africa (UBA) branches within the metropolis today. This action comes after UBA allegedly failed to settle a N14.3 million tax debt.
Hajiya Aysha Ahmad, KADIRS Board Secretary and Legal Adviser, confirmed the enforcement, citing the bank’s resistance to calls for payment despite “numerous demand notices.”
“We’ve exhausted all communication channels,” Ahmad stated. “They even challenged the assessment in court, but the tax appeal tribunal’s decision still required them to settle the dues.”
KADIRS emphasized that this action serves as a starting point to achieve the N120 billion revenue target set by the state government. Ahmad warned, “We will pursue all tax defaulters to ensure the state receives what is rightfully owed.”
Disruptions for Customers, Businesses
The sealing of UBA branches creates a significant inconvenience for customers and businesses reliant on their banking services. With immediate access to accounts and financial transactions restricted, economic activity in the city is likely to be impacted.
Call for Voluntary Compliance
KADIRS used this opportunity to urge residents to fulfill their tax obligations. Ahmad stressed the importance of voluntary compliance, calling it a “civic responsibility.””
Uncertain Resolution
The timeline for reopening the UBA branches remains unclear. Relief will depend on UBA’s response to KADIRS’ enforcement action. This situation highlights the potential consequences of tax delinquencies for businesses operating in Kaduna state.
