The Cross River Internal Revenue Service has sealed off the premises of the Cross River Basin Development Authority (CRBDA) and the Federal Neuropsychiatric Hospital (FNPH), Calabar, over unpaid tax liabilities owed to the Cross River State Government totaling over ₦154 million.
The enforcement exercise, carried out by officials of the Service in Calabar, followed what is described as repeated notices and engagements with the affected institutions to settle outstanding tax obligations.
Speaking during the operation, the Service’s Director of Compliance and Tax Audit, Mr. Ayi Okon, said the action became necessary after several efforts to secure compliance failed, stressing that tax remittances remain critical to the delivery of public services and the development of the state.
According to Okon, the Service is seeking to recover ₦53.5 million from the Cross River Basin Development Authority over Withholding Tax arrears covering the 2019 to 2021 years of assessment, as well as ₦101.4 million from the Federal Neuropsychiatric Hospital on Pay-As-You-Earn (PAYE) and Withholding Tax liabilities covering the 2022 and 2023 tax years.
The affected institutions were sealed pending the resolution of the outstanding liabilities and further engagement with the relevant authorities.
Also speaking, the Director of Legal Services and Enforcement, Mr. Emmanuel Esirah Esq., reiterated the Service’s commitment to enforcing tax compliance without fear or favour, emphasizing that both public and private institutions are expected to comply with stipulated tax regulations.
“In line with the Nigeria Tax Administration Act, the Service has powers to distrain and impound properties belonging to defaulting taxpayers until compliance is achieved,” he stated.
On whether owners of the sealed establishments have the right to break the seals, Esirah warned that any unauthorized action would attract stringent penalties and advised against such acts.
He further clarified that clinical and medical services at the Federal Neuropsychiatric Hospital were not disrupted, noting that only the offices of the Chief Medical Director, the Accounts Department, and the Administrative Block were sealed during the enforcement exercise.
By Achiane Adams
