The Cross River Government has threatened severe penalties on a firm, Bao Yao Iron and Steel Company, for owing the state N1.2 billion in accrued tax liabilities.

This was disclosed by Mr. Ayi Bassey, Director of Compliance, Cross River Internal Revenue Service (IRS) on Monday during a compliance drive by the service to the premises of the firm in Calabar.

Bassey said the service had taken steps provided by law, but the company refused to discharge its statutory responsibility to the government.

“We have served them demand notice, a final demand notice; for four periods, they have been issued pre-action notices, and they have done nothing to show they have a responsibility to the state,” he said.

“As a service, we view this as a deliberate attempt on the part of the management of the company to undermine the developmental efforts of the present administration in the state.

“We have placed the noncompliance stickers as our final demand to them; beyond this, we will take necessary steps to ensure we enforce compliance.”

On his part, Mr. Emmanuel Esira, Director of Legal Services and Enforcement of Cross River IRS, said the visitation was a further administrative step to get the company informed of their indebtedness to the government.

According to him, “the tax we are asking for are deductions from staff salaries that have not been remitted to the tax authorities in the state since 2009.

“The notification stickers will be on their premises until they comply, and if they don’t respond, we will take further action.”

Esira urged other companies doing business not to allow situations to get to the point where they have to paste noncompliance stickers on their premises before carrying out their obligations.