The Cross River State Internal Revenue Service has sealed off the offices of the Cross River Basin Development Authority and the Federal Neuropsychiatric Hospital over alleged unpaid tax liabilities amounting to about N154 million.
The enforcement exercise was carried out in Calabar as part of efforts to recover outstanding taxes from defaulting institutions.
Officials of the revenue service explained that the action followed several failed attempts to get the affected institutions to comply with tax obligations.
According to the agency, repeated assessment notices, demand notices, and pre-distraint notices were ignored before the sealing exercise was eventually carried out.
Director of Compliance at the revenue service, Ayi Bassey, stated that the Basin Development Authority owed more than N53 million.
He said the debt resulted from a tax audit covering the period between 2019 and 2021, adding that the institution failed to respond despite several engagements aimed at resolving the matter amicably.
The revenue service also disclosed that the Federal Neuropsychiatric Hospital in Calabar owed over N101 million in Pay-As-You-Earn and withholding tax liabilities covering the 2022 and 2023 tax years.
Authorities said the hospital had earlier requested details of the tax computations but failed to take further action after the information was provided.
Director of Legal Services and Enforcement, Emmanuel Esirah, said the enforcement exercise was backed by provisions of the Nigerian Tax Administration Act.
He explained that taxes deducted from workers’ salaries must be remitted to the appropriate tax authority, warning that failure to do so attracts penalties and enforcement actions.
Esirah clarified that medical services at the Neuropsychiatric Hospital were not disrupted during the operation.
According to him, only administrative offices, including the office of the Chief Medical Director and some management sections, were sealed to avoid interfering with patient care and treatment services.
