Tax Evasion: Consumers stranded as Kano seals off 5 GTBank branches

*The Kano State Internal Revenue Service has stated that GTBank Plc must pay a minimum of 25 percent of the accruing tax liability totalling over N1 billion, and provide the requested documents as a condition for reopening the shut branches

Alexander Davis | ConsumerConnect

Following the apparent failure of the leading financial institution to audit its books and pay due taxes from 2014 to 2019, the Kano State Internal Revenue Service (KIRS) has shut five branches of GTBank Plc, leaving hundreds of customers stranded Tuesday, April 13.

The affected branches were the ones located on Murtala Muhammed Way, Wapa, Zaria Road, Bachirawa and France Road respectively.

The KIRS, in a media briefing on the tax evasion Tuesday, said the closure of the bank’s branches in the ancient city of Kano is in line with an order issued by the Kano State High Court over the bank’s failure to audit and pay its taxes for five years.

Governor Abdullahi Ganduje of Kano State

Several customers of the GTBank were stranded Tuesday when the state tax authority sealed off the five branches of Guaranty Trust Bank.

Bashir Yusuf Madobi, Legal Director of the tax regulatory agency, told journalists at the briefing that the bank’s refusal to pay the amount accruing to over N1,005,687,755.55 or release some of their audit reports forced the agency to take the action.

The KIRS Legal Director stated: “What irritated us to take this action is that right from the initial stage, we demanded some documents from them which they failed to honour us and give us the documents.

“As a revenue authority, KIRS is saddled with the responsibility of enforcing payment of taxes.

“One of the procedures we follow in order to enforce payment of due tax is by instituting a court case before a competent court.”

Madobi said: “So, we decided to file this case before the State High Court on ex parte application.

“We the KIRS as plaintiff after furnishing the court with all the evidence, the court satisfied that the tax is due, and based on that, it granted us judgement that we should go and seal the property of GT Bank.

“This is why we went there today to enforce the judgment and enforce the payment of due tax as provided under the extant revenue laws.

“The money is over N1 billion. The next line of action is for them to come so that we sit down and sort it out if they are willing to do so.”

According to the tax agency, the bank must pay a minimum of 25 percent (amounting to over N250 million) of the liability and provide the earlier requested documents, a condition for reopening the sealed branches.

The KIRS added the bank is also expected to pay 10 percent of the total revenue amount, as provided for any taxpayer who refuses to pay until the matter gets to court.

Several hundreds of customers who earlier had trooped to the affected bank branches for transactions Tuesday morning were said to have got stranded and later left.

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