Cross River IRS Issues Final Demand To UNICAL Over N3.7 Billion Tax Default From 2018 To 2022
The Cross River Internal Revenue Service (IRS) has issued a final demand to the University of Calabar (UNICAL) over an alleged N3.7 billion tax default from 2018 to 2022.
The IRS warned that legal action would follow if the university fails to clear the debt within 14 days.
Director of Compliance, Mr Ayi Okon, disclosed this on Monday during the pasting of non-compliance stickers at key locations on the university premises in Calabar. Okon, who led the enforcement team, explained that a back-duty audit uncovered the unpaid taxes.
The announcement was reported by the News Agency of Nigeria (NAN).
“The Cross River Internal Revenue Service (IRS) has threatened legal action against the University of Calabar (UniCal) if it continues to default in remittance of taxes to the state.
“Mr Ayi Okon, Director of Compliance, Cross River IRS, stated this during the official pasting of Non-tax Compliance Stickers at different spots on the institution’s premises on Monday in Calabar. Okon, who led a team of IRS officials to the institution, said they conducted a back duty audit on the university from 2018 to 2022 and N3.7 billion worth of non-tax remittance was discovered,” the NAN report read in part.
The IRS communicated the N3.7 billion tax default to UniCal through an initial assessment notice, requesting a response within a stipulated period.
However, the university allegedly failed to respond, prompting the IRS to escalate the matter by issuing a demand notice in April 2024. When no response was received, a final demand notice followed in May 2024.
Despite multiple reconciliation meetings, where the university made commitments to resolve the issue, UniCal has yet to meet its obligations.
More insight
The IRS emphasized that withholding tax revenues negatively impacts state-funded projects and essential public services.
The decision to paste non-compliance stickers on the university’s premises was deemed necessary to pressure the institution into fulfilling its tax responsibilities. If the debt is not settled within 14 days, the IRS has warned it will pursue legal action to recover the amount owed.
The agency stressed that it has maintained open communication with the university’s bursar and Vice-Chancellor throughout the process, highlighting efforts to reach an amicable resolution.
However, the ongoing non-compliance has led to the current standoff, which the IRS views as a significant obstruction to the state’s development agenda.
The Cross River IRS reaffirmed its commitment to enforcing tax laws equitably across sectors, underscoring that all institutions, including public ones, must meet their financial obligations. It urged the tertiary institution to act swiftly to avoid further escalation and potential disruptions to the university’s operations, which could result in legal action.
