IRS Threatens Legal Action Against UNICAL Over Alleged N3.7b Non-Tax Compliance

The Cross River State Internal Revenue Service (IRS) has issued a warning of potential legal action against the University of Calabar (UNICAL) due to the institution's ongoing non-compliance with state tax laws. This revelation came to light during the official pasting of Non-Tax Compliance Stickers at various locations within the university's premises on Monday.

Mr. Ayi Okon, Director of Compliance at the Cross River IRS, led a team of officials to UNICAL and disclosed that a back-duty audit covering the period from 2018 to 2022 revealed a staggering N3.7 billion in unremitted taxes. This amount was formally communicated to the university through an assessment notice.

According to Okon, UNICAL failed to respond to the IRS's requests within the stipulated timeframe, prompting the issuance of a demand notice in April 2024, which also went unanswered. “We issued a final demand notice in May, but UNICAL still did not respond,” Okon explained. “It was only after we issued a pre-action notice that the university finally replied in writing.”

Following this response, the IRS arranged a meeting with UNICAL officials, including the bursar and the Vice Chancellor, in which the university made commitments regarding its tax obligations. However, Okon stated that these commitments have yet to be fulfilled.

“By withholding tax revenue due to the government, UNICAL is indirectly opposing the developmental projects of the state,” he emphasized. Okon further indicated that if the university administration does not respond within seven to 14 days, the IRS legal team will proceed with further legal action.

Mr. Emmanuel Esira, Director of Legal Services and Enforcement for the Cross River IRS, reiterated that all procedures outlined by the law have been followed, stating that the pasting of non-compliance stickers is a crucial step to compel UNICAL to fulfill its tax obligations and avert impending legal consequences.