The Cross River State Internal Revenue Service, CRS-IRS, on Friday sealed the offices of the Cross River Basin Development Authority and the Federal Neuropsychiatric Hospital, Calabar, over unpaid tax liabilities totalling N154 million.

The enforcement action, according to the revenue agency, was aimed at compelling compliance from institutions that had failed to settle their obligations after repeated notices.

Speaking with journalists during the exercise, the Director of Compliance Department of the Cross River Internal Revenue Service, Ayi Okon Bassey, said the Basin Authority owed more than N53 million following a tax audit conducted for the period between 2019 and 2021.

He said several notices, including assessment, demand and pre-distrain notices, were served on the agency without response.

“This morning, we went to the Cross River Basin Authority. The Basin Authority is indebted to the Cross River State Government to the tune of over N53m and this liability arose as a result of a tax audit exercise carried out for the period 2019 to 2021.

“Several notices had been served on the management of that institution without any response. We even went further for a pre-distrain visit all in an effort to see how these liabilities could be sorted out amicably, but they refused to come forth. That is why we took this action,” he said

Bassey also disclosed that the Federal Neuropsychiatric Hospital, Calabar, owed over N101 million in unremitted Pay-As-You-Earn, PAYE, and withholding taxes for 2022 and 2023.

According to him, the hospital was served assessment notices in October 2025, followed by demand notices in February 2026 and a pre-action notice in March 2026, but failed to comply.

“We had to move for a pre-distrain visit, which they requested in writing that they needed the computation of their liability.

“We sent it to them with a timeline of seven days to come in for review. It is over one month today before this action,” he said.

Also speaking, the Director of Legal Services and Enforcement of the service, Emmanuel Esirah, said the enforcement became necessary because taxes deducted from workers’ salaries must be remitted to the appropriate authority.

“It is not even their money. It is the money you deduct from staff and remit.

“If you deduct and refuse to remit, it is an offence which attracts penalties and interest,” he said.

Esirah explained that the service acted under the Nigerian Tax Administration Act, which empowers it to distrain and impound property belonging to defaulting institutions until compliance is achieved.

“What we have done today is distrain. We are entitled to distrain their premises and chattels. If we see their vehicles or any of their property anywhere, we have the authority to impound them,” he said.

He clarified that medical services at the Federal Neuropsychiatric Hospital would not be affected, adding that only administrative offices were sealed.

“We did not touch the pharmacy, the wards or the hospital facilities because treatment of patients must continue. We sealed only the office of the CMD because he is responsible for giving directives,” Esirah added.

The revenue service warned other corporate bodies and institutions in the state to comply with their tax obligations, saying tax administration under the new law was no longer business as usual.

Vanguard)

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