Kano Government Shuts Max Air Office over N197 Million Tax Debt
- The Kano government has sealed three companies, including Max Air's head office, over tax default
- The state government also sealed two other companies, Dantata Sawoe Construction Company and Nothern Rice and Oil Milling Nigeria Limited
- The Director of Debt Management and Enforcement, Ibrahim Abdullahi, disclosed that the companies were shut down following a court order
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Kano State Internal Revenue Service has sealed three companies, including Max Air Limited's head office, for non-payment of taxes for five years.
Katsina billionaire Dahiru Mangal, an in-law to former Kano State governor Rabiu Kwakwanso, owns the airline.
Source: Getty Images
Kano tax office seals two other companies
Also, the agency shut down the head office of Dantata and Sawoe Construction Company along the Kano-Zaria road for the non-payment of N241.2 million PAYE and withholding taxes for two years
Punch reports that the agency also sealed the Northern Rice and Oil Milling Nigeria at Gunduwawa.
The Director of Debt Management and Enforcement, Ibrahim Abdullahi, disclosed that the companies were shut down following a court order.
According to Abdullahi, the agency went out to enforce payment of tax liabilities to ensure all liability taxes are paid as at and when due because the agency has a classification of taxes.
He stated that the decision to seal the Max Air office and the two other firms were due to their inability or refusal to offset tax liabilities.
Abdullahi disclosed that the measures were necessary to collect all revenue accruable to the state and improve the state’s revenue base, adding that the agency would continue similar exercises against all tax defaulters.
Max Air suspends operations
In August, airline Max Air announced its indefinite domestic flight operations suspension from Friday, August 2, 2024.
Max Air disclosed this in a statement, explaining that the decision to halt operations is due to the ongoing hunger protests.
Max Air is the only airline that has halted operations because of the protests, while others have experienced delays due to low passenger turnout and flight disruption.
During the suspension period, Max Air assured customers that its dedicated customer service team would address queries and provide updates.
Max Air explains why it shut down operations temporarily
Legit.ng earlier reported that a domestic airline, Max Air, vowed to operate safely, even if it would need a brief halt in service to alleviate concerns.
Following an intervention by the Nigerian Civil Aviation Authority (NCAA) in July 2023, the airline recently halted all flying operations.
Recall that the regulator suspended the domestic operations of Max Air, one of Nigeria's leading airlines, in a letter NCAA/DG/AIR/11/16/363 over fuel contamination and landing gear malfunction.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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