₦airaland Forum

Scholar8200:
But Corporate bodies eg Banks pay Income tax to FIRS (Federal govt) alone not SIRS!What then? Except if the issue here is remittance of PAYE deducted, there is more to this story.

A wise observation. If he is after taxes, he should actually be going after the employees of the Banks for their PAYE.

I understand they refuse the grant him a loan and he told civil servants in Ekiti to withdraw their funds from the banks that Ekiti state government will not pay salaries into those accounts. Now he is closing the banks for tax evasion.

The question is what kind of tax evasion? He should have written to the Bank if there were any dues pending.

drberry:
Why will such big banks wait to be served court papers before paying their taxes, but they didn't wait to be served court papers before debiting people's accounts. Mtcheew!!

The GTBank I know "very well"wouldn't default on Tax. It has to be something else.

Scholar8200:
But Corporate bodies eg Banks pay Income tax to FIRS (Federal govt) alone not SIRS!What then? Except if the issue here is remittance of PAYE deducted, there is more to this story.

Exactly

How come it is only Ekiti state, these banks are owing?

[quote author=tmark1888 post=45956737thank u very much its like u live in ekiti where I live too. Fayose asked dem to 50million of which oda banks did bt Eco bank refused saying dey re paying tax and dere s no reason why dey will pay such amt....which made Fayose announced on EKTV dt nobody shld transact business with dem.

Sweetlemon:
This is very true and I won't argue that.

BUT if Buhari had done same won't you have called him a tyrant?

I really wouldn't have because Nigeria loses billions of naira to tax invaders yet if you see the daily ALSI, you'll find that these bags companies and firms that invade taxes are among the top earners in the market. So I wouldn't have called Bubu a tyrant.

Facts have emerged over why Governor Ayodele Fayose is up in arms against Ecobank in Ekiti State.

Fighting from two flanks, Fayose launched his battle first against the bank over its refusal to meet Fayose’s outrageous demand of N1billion in bribe as his share from the N5b loan granted former Governor Kayode Fayemi’s administration, but instead the bank insisted to offer support for the state government infrastructure development by way of corporate social responsibility, which Fayose declined.

The Monitors authoritatively gathered that Fayose’s anger against Ecobank dated back to 2014 when he emerged as Governor-elect. When Fayose discovered that Ecobank loaned the Fayemi administration N5 billion in early 2014 for the completion of some legacy projects, such as the New Government House, the Oba Adejugbe General Hospital and the Pavilion, among others, Fayose was furious because he concluded, though wrongly, that Ecobank gave Fayemi’s government the loan to prosecute that year’s June gubernatorial election.

When Fayose was sworn in on October 2014, he bared his fangs on Ecobank by ordering the withdrawal of a huge government fund to the tune of N800 million at a go!


The management of the bank sought audience with the Governor and pleaded with him not to run them out of business in the state.
Fayose listened to them and gave them a condition that the bank must be ready to part with huge sums of money, which Fayose said was for the development of the state but which in actual fact was a bribe that would end up in his pocket. The bank offered to part with some funds running into hundreds of millions of naira for the development of the state in line with their corporate governance policy but Fayose rejected this offer and insisted the bank must part with N1 billion before he would allow them a breathing space in the state. The bank felt scandalised by this ridiculous demand by the governor.

Fayose’s another angst against the bank emerged when the governor levied all banks in the business district along the state secretariat on Bank Road in the state capital to pay development levy of N5milion each to repair Secretariat Road.

Ecobank and many other banks in the state refused to part with the money but Fayose singled out Ecobank and GTB for punishment by removing the culverts at the entrances to their premises so that no customer can drive into the banks.
The funds that Fayose forced the banks to cough out had been spent by him to do a shoddy job on the Bank Road, which he commissioned in its rough state recently with eight visiting governors in attendance.

Not done, Fayose brought his hammer on Ecobank by issuing a directive for all MDAs, civil servants and pensioners to close down their salary accounts with the bank while all government officials are forbidden from transacting business with the bank. We reliably gathered that Ecobank has weighed its options and chosen to let Fayose be for the next two years.

The implication of this is that the bank may be forced to close down all its branches in Ekiti State and lay off its over 100 staff who are Ekiti indigenes. The governor by his action is ready to throw over 100 Ekiti families into the labour market just because the bank refused to satisfy his insatiable appetite for primitive accumulation of wealth. ‘Ore Mekunu’ indeed!

For the pensioners and other respected senior citizens, they will now be made to go through the rigours of opening new bank accounts again when they should be at home enjoying their well-deserved rest after serving the state meritoriously.

Most of the individual pensioners accounts are jointly run by them and their children due to illnesses associated with old age( because they can’t come to the bank again for transactions personally), and the self-acclaimed Governor of the people now wants to make these respected aged people suffer by withholding their pensions if they refuse to obey his directive.

https://naijabang.com.ng/fayose-fights-ecobank-dirty-bank-vacates-ekiti-for-now/

So many ignorant people on nairaland. Are Banks suppose to pay taxes to state govt?

MadCow1:
Mad people state

Apt, since its coming from MadCow...lol

irondome:
The GTBank I know "very well"wouldn't default on Tax. It has to be something else.

So you mean the governor would take such a drastic decision without a proper information? I doubt so my friend. Don't forget that the banks didn't deny that they weren't owing, they rather said they haven't been served court papers.

Since the banks are making abnormal profits every year, so why have they refuse to pay their taxes? Gov. you are on the right path, if they cant, let them leave the state.

No b today deyve dug that ditch in front of d banks. Been like about 2/3wks now.
He even instructed all civil servants to withdraw their salary accounts from the said banks with 48hrs ultimatum!
Learnt it's not actually tax persay,but they were told to contribute 5milkion to fix the area housing their offices(bank road) but dey refused.
Others negotiated with the govt while those two refused,hence the actions against them.

Bad market...

freshyabstel:
Listen, before such drastic actions would be taken, he surely would have done all that needed to be done. in leadership, there is what is called the carrot approach and the stick approach. I know Gov Fayose, he is a very nice man and same time, a no nonsense fellow.

What you don't understand is that his actions will spell doom for Ekiti state as Banks doesn't even have much patronage from Ekiti like dt.
Ekiti will feel the hardships more than anyone else.
His style reminds me of the Kunu sipping Daura President who restricted forex for months on no ends thereby forcing the blackmarkets to boom and subsequently recession.
Its good for leaders to have a good knowledge of Economics.

May ur days be lng My Able governor,God bless ekiti state,God bless Nigeria

TonyeBarcanista:
Nothing stops him from inviting the management and compel them to pay or go through the courts to compel them to pay.

must they be compelled before doing what's right ?

drberry:
So you mean the governor would take such a drastic decision without a proper information? I doubt so my friend. Don't forget that the banks didn't deny that they weren't owing, they rather said they haven't been served court papers.

It's called public relation. It's another way of the bank saying --there is no legal reason why the Governor would take such insane action. Don't forget that Fayose is classless; to put precisely, he is a thug.

moyinoluwabun:
pay which money to him? To his personal account or to state govt account? Which CSR has GTB done in ekiti? Please tell me one and we can pick up Fayose from dia

Actually,Fayose asked that the money should be paid to his PERSONAL account...which Ecobank Management refused.The amount is around 300million.For GTB,there case is even simpler...the amount is around 5million.Meanwhile,this money is not tax...its just a cooked up money from nowhere.The randy Governor simply want to dupe them.When these two banks refused Fayose became angry.He asked civil servants to withdraw their salary accounts from them.the banks refused to bend or beg.Fayose in his usual manner now started talking of 199...something non existent tax...as an excuse to rope them in or close them.

can you imagine, Follw the Ekiti issue very well...it has nothing to do with tax.
Fayose asked the banks to each contribute a special money to
him. The banks refused, saying they have been paying their
taxes and doing CSR in the state. they even volunteered to
increase their CRS spend in the state. But Oshokomole said
whosait, they must pay him. that is the genesis of the wahala

MAY BE HE HAS ASKED THEM FOR LOANS AND THEY TURNRD DOWN HIS REQUEST, WE SHALL GET TO THE ROOT OF IT ALL. FAYOSE THEY VEX NOW.

payload2000:
Actually,Fayose asked that the money should be paid to his PERSONAL account...which Ecobank Management refused.The amount is around 300million.For GTB,there case is even simpler...the amount is around 5million.Meanwhile,this money is not tax...its just a cooked up money from nowhere.The randy Governor simply want to dupe them.When these two banks refused Fayose became angry.He asked civil servants to withdraw their salary accounts from them.the banks refused to bend or beg.Fayose in his usual manner now started talking of 199...something non existent tax...as an excuse to rope them in or close them.

ok, if true that's a bad idea from him. My only problem is which sides of story to believe cos we politicise every issue in naija.

irondome:
It's called public relation. It's another way of the bank saying --there is no legal reason why the Governor would take such insane action. Don't forget that Fayose is classless; to put precisely, he is a thug.

Well I'll still revert to my first question. Why will such big banks wait to be served court papers before paying their taxes when they make money on a daily basis? The state needs money to pay workers. Desperate times, desperate measures.

drberry:
Well I'll still revert to my first question. Why will such big banks wait to be served court papers before paying their taxes when they make money on a daily basis? The state needs money to pay workers. Desperate times, desperate measures.

I would still revert to my first answer; GTBank would never default on tax. They are several years ahead of other banks in corporate governance. The bank is probably being punished for not yielding to Fayose's shakedown.

irondome:
I would still revert to my first answer; GTBank would never default on tax. They are several years ahead of other banks in corporate governance. The bank is probably being punished for not yielding to Fayose's shakedown.

Fayose's shakedown?? Really? Please enlighten me...