Kaduna IRS Seals Telecom Masts for N5.8bn Tax

The Kaduna State Internal Revenue Service has taken action against telecommunications companies MTN and Globacom for unpaid taxes, resulting in the sealing of seven telecommunication masts in urban areas across the state. This move, aimed at recovering outstanding taxes amounting to N5.8 billion, was disclosed by Zakari Muhammad, the Head of Corporate Communications for the Kaduna IRS, in a statement issued on Thursday. The decision to seal the masts, crucial for mobile network operations, was made due to substantial tax liabilities identified by the Kaduna State Urban Planning and Development Agency (KASUPDA).

According to the statement, the Kaduna State Internal Revenue Service exercised its authority under Section 104 of the Personal Income Tax Act to seal the masts with significant tax debts as determined by KASUPDA. The affected masts include those belonging to MTN and Globacom located at various sites in Kaduna urban areas.

During a media briefing, Aysha Ahmad, the Secretary and Legal Adviser of the KADIRS Board, emphasized the necessity of such measures in compelling companies to meet their tax obligations. She stated that resorting to enforcement actions was unavoidable, given the failure of companies to voluntarily comply with tax laws. Ahmad reiterated the importance of citizens fulfilling their tax duties, highlighting voluntary compliance as the preferred approach, while enforcement measures are only employed as a last resort, especially considering the Kaduna State Government’s revenue target of N120 billion.

Shamsuddeen Lere, the Legal Adviser of Kaduna State Urban Planning Development Authority (KASUPDA), confirmed issuing notices to tax defaulters but expressed disappointment at the lack of compliance. He emphasized the determination to diligently pursue all defaulters, emphasizing that the unpaid taxes rightfully belong to the state government.