The Cross River Internal Revenue Service (IRS) on Monday issued a final demand to the University of Calabar (UNICAL) over an alleged N3.7bn tax default accrued in four years.
The Director of Compliance, Mr Ayi Okon warned that the debt dated 2018 to 2022 would result in legal actions within 14 days.
The legal consequence was disclosed at the pasting of non-compliance stickers at key locations on the university premises when Okon led the enforcement team, in Calabar.
He said the non-tax remittance was communicated to the institution through an assessment notice, adding that the university refused to respond to a demand notice issued in April 2024.
“The Cross River Internal Revenue Service (IRS) has threatened legal action against the University of Calabar (UniCal) if it continues to default in remittance of taxes to the state.
“We issued a final demand notice in May, but UNICAL still refused to respond; it was at the point we issued a pre-action notice that the university responded in writing.
“So, we obliged them to a meeting, after which we have had a series of reconciliation meetings where they made commitments, but to date, they have not kept any of the commitments.
“We have been in contact with the institution’s bursar and the vice chancellor; they should know that withholding tax revenue due to the government is indirectly opposing the developmental projects of the state,” he said.
On his part, Emmanuel Esira, the director of legal services and enforcement of Cross River IRS, said they had followed all the procedures stipulated by the law, which was why it resulted in the need to paste the non-compliance stickers according to NAN.