Revenue agency seals Kaduna Electric offices over ‘N464.5m tax liability’

The Kaduna state Internal Revenue Service (KADIRS) has sealed off the headquarters of Kaduna Electric Distribution Company (KADCO) over alleged N464.5 million in tax liability.

The headquarters, better known as NEPA building, located on Ahmadu Bello Way, was shut on Wednesday alongside the company’s Kawo area office, NDA bus stop, Unguwan Dosa service centre, Kawo service centre, and other offices located at Asikolaye and Turn Wada in Kaduna metropolis.

Kaduna Electric is one of the electricity distribution companies in the country.

It is responsible for retail distribution and marketing of electricity in Kaduna, Kebbi, Sokoto and Zamfara states.

Speaking with reporters after exercise, Aysha Mohammed, board secretary and legal adviser for KADIRS, said the offices were sealed for not settling outstanding pay-as-you-earn (PAYE) and withholding taxes between 2012 and 2018.

Mohammed noted that apart from withholding tax, Kaduna Electric has been deducting PAYE from staff, but not remitting to KADIRS as required by law.

She said the state agency has been in talks with the electricity company since 2019 but added that Kaduna Electric has refused to act on its demands.

“We have been discussing with the management of the company since 2019 to pay the outstanding liability, but they refused, as such we had no option than to sealed off the offices,” she said.

“The headquarters and other sealed offices will remain close until the N464.5 million tax liability is settled.”

Ado Garba, the agency’s head of enforcement, said KADIRS sent seven notices to Kaduna Electric, demanding the settlement of the liability with no response from the company.

“This, therefore, left us with no option than to obtain a warrant of authority from the court to seal off the offices,” he said.

“This is in line with Section 104(1) and (4) of the personal income tax amendment act 2011 and section 37 subsection (3) and (4) of the Kaduna state tax codification and consolidation law, 2020.”

Breaking news.
KADIRS Seals off Headquarters of Kaduna Electricity Distribution Company (Kaduna Electric) popularly know as (NEPA BUILDING)Over tax liabilities of N464,486,991.53k, being arrears of tax between 2012 and 2018 years of assessment.@elrufai @InsideKaduna_ @channelstv pic.twitter.com/BYZCuBZu8q

— Kaduna State Internal Revenue Service (@kadirsgovng) April 21, 2021