BY GBENGA OLARINOYE

OSOGBO — Commercial banks operating in Osun State are said to be owing the state government over N1bilion, being taxes deducted from their staff, withholding taxes and other forms of taxes and rates due to the state government.

The acting chairman, Osun State Internal Revenue Service IRS, Mr. Dayo Oyebanji disclosed this while fielding questions from newsmen in Osogbo,  weekend.
He declared that the state government had therefore directed the affected banks that all outstanding taxes, withholding taxes and others must be paid into the coffers of the state government on or before December 31,2013, failure to which they would be sanctioned and de-listed as agents for collection of taxes in the state.

The state government  also directed all banks collecting money and taxes on its behalf to within the same period, December  31, 2013, integrate into the new e-payment system and ensure that all monies and taxes are promptly paid into the state government accounts for automatic revenue receipts to payers.

It frowned at delay in the sweeping or remittance of money collected on behalf of the government by banks, saying that the delay in posting revenue collected on behalf of the government through e-payment system into the general revenue account impedes flow of income.

Oyebanji, who did not mention names of the affected banks, declared that the government had resolved that non-compliant banks over integration on e-payment application shall be de-listed from revenue collection agents of the state government.

The state Internal Revenue Service, IRS, in a warning letter written to banks entitled: “Demand Notices on Liabilities from Backduty Investigation on PAYE, Withholding and Development Levy for the PAYE (Amended Liability 2012),” by Dayo Oyebanji dated December 13, 2013 reads in part:  “Please, be informed that our board would be left with no other option than to disdain your bank provided you failed to settle your backduty liabilities mainly on PAYE and withholding taxes for the year 2012.