The Kaduna State Internal Revenue Service (KADIRS) has taken action against the Kaduna Electricity Distribution Company (KAEDCO) by sealing its premises due to a tax liability amounting to N600 million.
This operation, conducted in the early hours of Friday, was executed following a court order aimed at enforcing compliance regarding the tax owed to the state.
Jerry Adams, the Executive Chairman of KADIRS, explained that the tax liability, which spans from 2015 to 2022, was established after reconciliations were made with KAEDCO, which had previously agreed to pay a substantial portion of the debt. However, Adams expressed frustration that KAEDCO has not fulfilled its commitments since the liability was established last year.
Adams stated, “We are backed by the law to seal and take over their premises in order to ensure compliance, and that is what we executed this morning.” He also urged other businesses and individuals to prioritize voluntary compliance with tax obligations.
This action comes amid broader discussions about tax compliance and fiscal responsibility among corporations in Nigeria, as the government seeks to bolster its revenue streams in the face of economic challenges.