Zenith Bank In Debt Mess, Branches Sealed

A court in Akure has granted a request by the Ondo State Board of Internal Revenue to seal offices of Zenith Bank in Akure and Ondo for refusing to pay tax to the state government.

On Monday, November 17, 2014, tax officials from the state stormed the offices of the financial institution and locked them.

They were accompanied by the security personnel, who ensured that the board officials were not disturbed in executing the court other.

The Director, Management Services, Legal and Enforcement Department of the tax board, Emmanuel Akinmutimi, who led the team, disclosed that all initial efforts made to ensure Zenith Bank remits the money failed, which forced the board to run to the court.

“Zenith Bank is one of our customers, like all other financial institutions.

“Record, however, shows that over the years the bank has not been remitting tax deductions to the Board of Internal Revenue,” Akinmutimi said.

He explained that, “We opened correspondence with them but they did not respond.

“During our last visit, we gave them a notice of non-compliance, telling them that we intended to approach a court of competent jurisdiction to obtain an order of restriction sealing off the bank. The bank did not oblige and we approached a court for an ex parte motion to seal-off the place for non-remittance of several millions of naira to the state government.

“The Federal Government is encouraging state governments to look inward for revenue generation, to develop their states, now that revenue coming from federation account is nose-diving by virtue of dwindling oil fortunes.

“Zenith Bank is owing over N100 million naira, which is a huge sum of money. There is a lot the government can do with such money.”