When the Kogi state Internal Revenue Service closed a branch of Union Bank Nigeria Limited in Kogi State on Friday 4 September, its customers were wondering what happened.
Now, the bank has said it would respond to the closure “through the appropriate channels.” This, according to the bank, is in an effort to ensure fair and proper assessment, and subsequently, prompt resolution of the situation and reduce the inconvenience to customers
The bank, in a statement said as an institution with a proven track record of responsible corporate citizenship, “it takes civic obligations seriously.” It said that for the benefit of our customers, the press, and members of the general public, “we wish to state the following, with regard to the above-mentioned incident.
“Occasionally, as in this case, we may disagree with state entities over the objectivity of tax assessments carried out relating to our business. These are typically resolved through rigorous professional reviews and audits, and sometimes through legal channels.”
“We are therefore disappointed that in this instance, the Kogi State Internal Revenue Service has chosen to escalate the issue rather than work through a professional review process to seek a prudent resolution.
“We are directing our response through the appropriate channels as our objective is to ensure fair and proper assessment, and subsequently, prompt resolution of the situation to reduce the inconvenience to our customers.”
The bank then urged customers impacted by the closure to choose convenient digital channels – UnionOnline, UnionMobile and *826# – which are available 24/7 for their banking needs.
What Led to the Closure
On Friday, 4 September, the Kogi State Internal Revenue Service sealed off a branch Union Bank of in Kogi state, based on what it called a State High Court judgment.
As explained by Barrister Isa Jamil, the Director, Legal Services, Kogi State Internal Revenue Service (KGIRS), in an interview published in Daily Post, explained that Union Bank defaulted in the payment of tax liability owed the state government.
“On the 21st of August, 2020, the High Court of Kogi State granted an application of the Kogi State Internal Revenue Service to distrain the premises of Union Bank of Nigeria Plc on the account of her default in the payment of tax liability owed Kogi State Government in the sum of N147,343,407.”
The report has it further: “The Director noted that the premises of the bank across Kogi State were sealed in pursuant to the court order.
Jamil recalled that Union Bank had filed a motion before the Kogi High Court seeking to set aside the Order of Distrain.
He said the court heard the application on the 26th of August, 2020 and after due consideration, dismissed Union Bank’s application for lack of merit.
The Director added that that in 2019, Union Bank also filed a case before the Tax Appeal Tribunal (TAT) sitting in Jos, disputing KGIRS assessment notice of the same liability.
But on 29th of July, 2020, the TAT found out that Union Bank was liable to Kogi State Government in the sum of N147,343,407 and directed immediate payment.
Jamil, however, hinted that the state is also looking at other lawful options to ensure that the liability is settled.
In its reaction, Union Bank said it would ensure prompt resolution of the situation and reduce the inconvenience to customers
‘We may disagree with state entities over the objectivity of tax assessments carried out relating to our business. These are typically resolved through rigorous professional reviews and audits, and sometimes through legal channels.
‘We are therefore disappointed that in this instance, the Kogi State Internal Revenue Service has chosen to escalate the issue rather than work through a professional review process to seek a prudent resolution.’”