The Kano State Internal Revenue Service (KIRS) has taken decisive action against Max Air Limited and two other companies for outstanding tax liabilities. Following a court order, KIRS sealed the headquarters of Max Air, citing unpaid taxes accrued between 2012 and 2017. This enforcement operation is part of a broader effort to strengthen the state’s revenue base and ensure compliance with tax obligations. Max Air unpaid taxes issue emerged after the airline failed to resolve its liabilities despite repeated notifications.
The closures also affected Dantata and Sawoe Construction Company, located on the Kano-Zaria Road, for allegedly defaulting on N241.2 million in Pay-As-You-Earn (PAYE) and withholding taxes from 2021 and 2022. Similarly, Northern Rice and Oil Milling Nigeria Ltd, situated in Gunduwawa Industrial Estate, was shut down over a smaller but unresolved tax liability of N600,000. These measures underline KIRS’s commitment to enforcing compliance among corporate entities operating within the state.
During a press briefing, Ibrahim Abdullahi, Director of Debt Management and Enforcement at KIRS, emphasized the necessity of the operation. “We initiated this action after securing a court order. These companies repeatedly ignored ample opportunities to settle their tax debts,” Abdullahi stated. He added, “This enforcement ensures all tax discrepancies identified by our team are resolved promptly to avoid further loss of state revenue.” These statements highlight the agency’s firm stance on prioritizing tax compliance as a cornerstone of public revenue management.
The Max Air unpaid taxes issue highlights the broader implications of tax evasion in Kano State. The KIRS enforcement team implemented stringent measures, stressing that the affected companies had been notified through multiple correspondences over time. Despite these reminders, there was no significant response from the defaulters. Consequently, the agency proceeded with the closures as a last resort. According to Abdullahi, “The sealed premises will remain closed until the outstanding liabilities are settled. We aim to send a clear message about the consequences of evading tax obligations.”
These actions form part of KIRS’s ongoing efforts to address tax evasion and boost Kano State’s financial stability. Abdullahi further noted that similar enforcement operations would continue as a deterrent and to ensure accountability. He urged other organizations to promptly meet their tax obligations, reiterating the importance of taxes in funding essential state projects.
The enforcement underscores the importance of financial discipline for corporate entities and highlights KIRS’s resolve to uphold its mandate. Tax compliance not only supports public infrastructure but also contributes to the overall economic development of the region.
