KW-IRS Seals Federal Mortgage Bank

Following a Court Order issued by the Kwara State Revenue Court on 12th February 2018, the Directorate of Legal and Enforcement of the Kwara State Internal Revenue Service (KW-IRS) sealed the premises of Federal Mortgage Bank at Asa Dam Road, Ilorin. The seal was over tax default of Fourteen Million, Seven Hundred and Fifty Thousand, Three Hundred and Thirteen Naira (N14, 750,313.18) being outstanding liabilities of Pay-As-You-Earn (PAYE), Development Levies, Business Premises and Water Rate from 2010 – 2015.
Mrs M. J Orire who gave the court judgement declared:

That order is hereby given to the applicant’s Chairman or any officers so assigned to distrain the respondents, good, chattels, machineries, plans, tools, vehicles, land, premises, bonds and other securities for the purpose of enforcing the payment of the Pay-As-You-Earn, Development levies, Business Premises and Water Rate of the respondent for years 2010 – 2015 which is in the sum of Fourteen Million, Seven Hundred and Fifty Thousand, Three Hundred and Thirteen Naira, Eighteen Kobo (N14,750,313.18). That order is equally given that the respondent shall pay the fine of Two Hundred and Forty-Nine Thousand, Six Hundred and Eighty-Seven Naira (N249,687) only.

The Director of Legal and Enforcement, Alhaji Lateef Okandeji who was represented by the Head of Enforcement Department, Barr. Lukman Mustapha led the Enforcement team to the premises at Asa Dam and restricted staff of the Bank from gaining entrance into the building. He said the decision came after a long deliberation between KW-IRS and Federal Mortgage Bank, Ilorin Branch. He explained that after a judgement was received to seal the premises of the Bank, the Service waited for a long period but there was no response and this prompted the Service to execute the judgement.

He added that in KW-IRS, sealing of shops and business premises is the last resort and resolving issues amicably is key in KW-IRS strategy, but when taxpayers remain adamant, the Service will be left with no other choice than to enforce.

Barr. Mustapha implored taxpayers, both individuals and corporate bodies to carry out their statutory obligation by paying their taxes at the right time to avoid being enforced.

The premises was later unsealed after the Bank had agreed to pay a substantial part of the judgement debt of N14,750,313.18 and also commit to a schedule on how the balance of the money would be paid. The Bank has demonstrated commitment to keeping the pledge as it made payment of part of the liability.


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