Because Keystone Bank on Abak Road and Heritage Bank on Ikot Ekpene Road were unable to pay their over N228 million in unpaid tax arrears, the Akwa Ibom State Internal Revenue Service (AKIRS) closed both locations.
Leo Umana, the Executive Director of the Revenue Board’s enforcement and debt recovery division, stated shortly after the exercise on Thursday that the banks were sealed as a result of AKIRS obtaining an ex parte order of notice to distrain from the Uyo Division of the Akwa Ibom State High Court.
He stated that Keystone Bank declined to pay N128,413,882 that was owed to the state government as unpaid taxes, while Heritage Bank failed to pay N100,270,910.
“The court order was signed by Justice Effiong Effiong who ordered that access to the bank premises and its facilities be restricted. The two banks have not been remitting actual tax from employee salaries as well as other taxes meant for the state,” he said.
According to Umana, the banks received warning warnings but, despite several months, did not comply.
He clarified that prior to taking legal action, AKIRS had used all available channels for reconciliation and settlement with the financial institutions.
He claims that banks that receive a notice to distrain have 14 days by law to speak with AKIRS and get the order revoked.
“If, after 14 days, they do not comply, we have the mandate of the court to sell the property and recover the tax owed the state,” he said.