The Cross River government has threatened to impose a severe penalty on Bao Yao Iron and Steel Company for owing the state N1.2 billion on accrued tax liabilities.

This was disclosed by Ayi Bassey, the director of compliance of the Cross River Internal Revenue Service, on Monday in Calabar.

Mr Bassey said the IRS had taken steps provided by law, but the company refused to discharge its statutory responsibility to the government.

“We have served them demand notice, final demand notice; for four periods, they have been issued pre-action notices, and they have done nothing to show they have a responsibility to the state.

“As a service, we view this as a deliberate attempt on the part of the management of the company to undermine the developmental efforts of the present administration in the state.

“We have placed the non-compliance stickers as our final demand to them. Beyond this, we will take necessary steps to ensure we enforce compliance,” Mr Bassey stated.

Emmanuel Esira, the director of legal services and enforcement at the IRS, said the visitation was a further administrative step to inform the company of its indebtedness to the government.

“The tax we are asking for are deductions from staff salaries that have not been remitted to the tax authorities in the state since 2009.

“The notification stickers will be on their premises until they comply, and if they don’t respond, we will take further action,” Mr Esira explained.

Mr Esira urged other companies doing business in the state not to allow situations to reach the point where they have to post non-compliance stickers on their premises before they fulfil their obligations.

(NAN)