Osun Banks Get Ultimatum To Remit Taxes To Govt

Date Posted: December 30, 2013 at 7:58 am

COMMERCIAL banks operating in Osun State have been given December 31 deadline to settle outstanding debts amounting to about N1 billion owed the state government in form of taxes deducted from their staff, withholding taxes and other taxes and rates due to Osun State government.

Acting Chairman, Osun State Internal Revenue Service (IRS), Mr. Dayo Oyebanji, who gave this directive, said the financial institutions have been given adequate time to remit the funds before the ultimatum was set.

Addressing reporters yesterday in Osogbo, Oyebanji said the state government had directed the affected banks that all outstanding taxes, withholding taxes and other taxes, must be paid into the coffers of the state government on or before December 31, 2013, failure of which they would be sanctioned and delisted as agent for collection of taxes in the state.

The state government was also said to have directed all banks collecting money and taxes on its behalf to, within the same period, integrate into the new e-payment system and ensure that all monies and taxes are promptly paid into the state government account for automatic revenue receipts to payers.

It also frowned against alleged delay in the sweeping or remittance of money collected on behalf of the government by banks, saying that the delay in posting revenue collected on behalf of the government through e-payment system into the general revenue account, impedes flow of income.

Oyebanji, who did not name the affected banks, declared that the government had resolved that non-compliant banks over integration on e-payment application risk being delisted from revenue collection agents of the state government.The state IRS, in a warning letter written to banks and entitled: “Demand Notices on Liabilities from Backduty

Investigation on PAYE, Withholding and Development Levy for the PAYE (Amended Liability 2012)”, and signed by Dayo Oyebanji dated December 13, 2013, said: “Please, be informed that our board would be left with no other option than to disdain your bank provided you failed to settle your backduty liabilities mainly on PAYE and withholding taxes for the year 2012.

He said: “We have been on this reconciliation exercise for almost six months and kindly note that the board has been very considerate to your bank based on the existing good relationship, that explains why we have waited for this long to enable us give adequate consideration to your appeal”, the board maintained.


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