Kano govt shuts Max Air office over N197m tax debt

On Monday, the Kano State Internal Revenue Service closed three businesses, including Max Air Limited's Ashton Road headquarters, for failing to pay obligation taxes for a five-year period (2012 to 2017). 

The owner of Max Air Limited is Alhaji Dahiru Mangal, a business magnate from Katsina who also happens to be Rabi’u Kwankwaso, the national leader of the Kwankwasiyya Movement. 

Because Dantata and Sawoe Construction Company refused to pay N241.2 million in PAYE and withholding taxes for two years (2021–2022), the agency also closed their head office on the Kano–Zaria route. 

Northern Rice and Oil Milling Nigeria Ltd., located in Kano State's Gunduwawa Industrial Estate off Hadejia Road, was sealed by the agency.

Ibrahim Abdullahi, the agency's Director of Debt Management and Enforcement, told reporters shortly after the exercise that the enterprises had been shut down as a result of a court order that the agency had acquired.

“We went out to enforce payment of tax liabilities to make sure all liability taxes are paid as at when due as we have the classification of taxes because our enforcement team found out there are discrepancies in the payment of the taxes,” he said.

He claims that after Max Air Limited, Dantata, Sawoe Construction Company, and other businesses failed or refused to offset their tax bills, the decision was made to seal their head offices.

“So, the agency found it necessary to take the measure to compel them to pay such taxes after several correspondences without positive responses from them,” he said.

He asserted that the action was also required to guarantee that all state-accrued income was collected in order to strengthen the state's revenue base. 

In order to make sure that all tax defaulters are reminded of their obligations, he said the agency would keep conducting similar exercises. The director insisted that unless the enterprises paid their outstanding bills, they would all stay closed.

Source