Kaduna state shuts FCMB, Keystone Bank branches over alleged N294 million tax liabilities

The Kaduna State Internal Revenue Service is clamping down on commercial banks in the state. This came after the state said the banks owe N294 million tax liabilities.

Some of the branches of FCMB and Keystone Bank in Kaduna were closed by the Kaduna State IRS due to the failure of the banks to pay their taxes and Pay-As-You-Earn (PAYE).

 

FCMB’s indebtedness, which was N72 million in tax liabilities, led to the closure of two branches at the Kachia road, Ali Akilu and Yakubu Gowon road.

Meanwhile, some branches of Keystone Bank were closed because the lender failed to remit its Pay-As-You-Earn, a decision that the Kaduna State IRS frowned against.

Keystone Bank is reportedly owing the state tax administrator N222.8 million. During the clampdown on the banks, branches of Keystone Bank located on Bank Road, Ahmadu Bello Way and Kachia Road were closed.

State clampdown on banks continues: The states government in Nigeria have been taking drastic steps to claim taxes ,which some companies have been accused of evading.

Akwa Ibom State Internal Revenue Servicehad accused both banks of tax evasion. According to a report, a notice pasted outside the branches disclosed that the banks had not been remitting the actual tax-deductible from their employees’ salaries and other relevant taxes to the state. Although the amount wasn’t disclosed, the debts were said to run into millions of naira.

Meanwhile, in 2018, the Oyo State Government acted against Diamond (now Access Bank), Stanbic IBTC, Skye, FCMB, Heritage, First Bank, Ecobank, Unity Bank, UBA, Keystone, Union bank among others.