The Akwa Ibom State Internal Revenue Service (AKIRS) has taken action against Keystone Bank on Abak Road and Heritage Bank along Ikot Ekpene Road for their failure to settle outstanding tax liabilities, amounting to over N228 million.
Following the exercise on Thursday, Leo Umana, the Executive Director responsible for enforcement and debt recovery activities at the revenue board, explained that the banks were sealed after AKIRS obtained a court order from the Uyo Division of the Akwa Ibom State High Court.
Heritage Bank had not paid N100,270,910, while Keystone Bank had failed to remit N128,413,882 in tax liabilities owed to the state government.
Umana noted that the court order, signed by Justice Effiong Effiong, authorized the restriction of access to the bank premises and facilities. He stated that the two banks had not been remitting the correct amount of taxes from employee salaries and other taxes intended for the state.
Umana revealed that warning notices had been issued to the banks, but they had failed to comply over several months. He added that AKIRS had explored reconciliation and negotiation opportunities with the financial institutions before resorting to legal action.
He further explained that according to the law, the banks served with the notice of distraint have 14 days to negotiate with AKIRS and lift the order. If they fail to comply after 14 days, the court allows AKIRS to sell the property to recover the outstanding taxes owed to the state.
