Kogi state Friday shut down the Union Bank of Nigeria, UBN Plc in Lokoja, the State capital over allegation of tax default to tune of N147.3 million.
Director of Legal Services, Kogi Internal Revenue Service (KGIRS), the agency that sealed up the premises, Barrister Isah Jamil said the High Court of Kogi State on August 21, 2020 granted an application by KGIRS to distrain the premises of Union Bank PLC on account of her default in the payment of the tax liability.
He added that the bank was owing the sum of ₦147,343,407.32k and that the premises of the bank in Kogi State were sealed pursuant to the said Order of the Court.
Barrister Jamil admitted that the Union Bank of Nigeria after the judgment filed a motion before the High Court of the State seeking to set aside the Order of distain but that the court having heard the application on August 26, 2020 dismissed the application of the bank for lack of merit.
According to him “It is important to also add that in 2019, UBN had filed a case before the Tax Appeal Tribunal (TAT) sitting in Jos disputing KGIRS assessment notice of the same liability.
“On 29th of July, 2020, the TAT found at the end of the hearing of the case that UBN is liable to Kogi State Government in One Hundred and Forty Seven Million, Three Hundred and Forty Three Thousand, Four Hundred and Seven Naira, Thirty Two Kobo (₦147,343,407.32) and directed the bank to pay the said amount immediately, but the bank failed to comply with the Judgment of TAT”
He pointed out that the case of the UBN has been dismissed as the distain of the premises of the bank will continue until the liability of the bank in the sum of ₦147,343,407.32K is fully settled.
Jamil noted that the state is also looking at other lawful options to ensure the liability is settled by the bank without further delay.