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Cross River revenue service threatens legal action against UNICAL over non-remittance of taxes

The Cross River Internal Revenue Service (IRS) has threatened legal action against the University of Calabar (UNICAL) if it continues to default in the remittance of taxes to the state

• October 21, 2024
UNICAL
UNICAL

The Cross River Internal Revenue Service (IRS) has threatened legal action against the University of Calabar (UNICAL) if it continues to default in the remittance of taxes to the state.

Ayi Okon, director of compliance, Cross River IRS, stated this during the official pasting of non-tax compliance stickers at different spots on the institution’s premises on Monday in Calabar.

Mr Okon, who led a team of IRS officials to the institution, said they conducted a back-duty audit on the university from 2018 to 2022, and N3.7 billion worth of non-tax remittance was discovered.

He said the non-tax remittance was communicated to the institution through an assessment notice.

The director alleged that the university refused to respond within the stipulated time, “and another demand notice was issued in April 2024, which they still refused to respond to.”

“We issued a final demand notice in May, but UNICAL still refused to respond; it was at the point we issued a pre-action notice that the university responded in writing.

“So, we obliged them to a meeting, after which we have had a series of reconciliation meetings where they made commitments, but till date, they have not kept any of the commitments.

“We have been in contact with the institution’s bursar and the vice chancellor; they should know that withholding tax revenue due to the government is indirectly opposing the developmental projects of the state,” Mr Okon said.

The director added that if, after 14 days, the administration of UNICAL does not pay up, the IRS legal team will take further legal action.

On his part, Emmanuel Esira, the director of legal services and enforcement of Cross River IRS, said they had followed all the procedures stipulated by the law, which was why it resulted in the need to paste the non-compliance stickers.

He added that their actions were a step to further compel the institution to discharge its tax obligations to the state to prevent legal actions.

(NAN)

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