The Cross River State Internal Revenue Service (CRIRS) has initiated administrative enforcement action against Bao Yao Iron and Steel Company Ltd over a tax indebtedness amounting to N1.2 billion.
According to the Director of Compliance at CRIRS, Mr. Ayi Okon, the company failed to remit Pay-As-You-Earn (PAYE) taxes deducted from staff salaries over five different periods, covering 2009 to 2022 and January to May 2025.
Mr. Okon disclosed that despite multiple engagements with the company to fulfill its statutory obligations, Bao Yao has consistently failed to comply. He emphasized that the agency is acting within the framework of existing tax laws in its bid to recover the outstanding liabilities.
“In keeping with the current administration’s zero-tolerance policy for revenue leakages, we consider this prolonged non-compliance as a deliberate act to undermine government’s development efforts. We remain committed to ensuring that every kobo owed to the state is duly recovered,” Mr. Okon stated.
Also speaking, the Director of Legal Services and Enforcement, Barr. Emmanuel Esirah, explained that the enforcement measure, including the issuance of ‘Notice of Non-Tax Compliance’ stickers, serves as a formal reminder to the company of its outstanding debt. He warned that the removal of such notices without authorization from the Service constitutes a punishable offence.
“The notices are legally binding. Removing them without settling the debt and obtaining clearance from the CRIRS will attract sanctions in accordance with the law,” Barr. Esirah cautioned.
Barr. Esirah also hinted that it is uncharitable and legally undefendable for any entity to conduct business in the State without fulfilling its tax obligations to the State.
The Service further urged all corporate entities and individuals conducting business within the state to be voluntarily tax compliant in order to avoid regulatory actions and reputational consequences.