Kano Government Shuts Max Air Office Over ₦197 Million Tax Debt

The Kano State Internal Revenue Service (KIRS) has sealed the regional office of Max Air, citing an outstanding tax liability of ₦197 million. The closure, which occurred earlier this week, is part of the state’s intensified efforts to recover unpaid taxes from businesses operating within its jurisdiction.

Tax Evasion Allegations

According to KIRS, Max Air failed to remit its statutory taxes over several years, despite repeated notices and attempts at dialogue. The agency emphasized that the action aligns with its mandate to ensure compliance with tax laws and generate revenue for the state.

“This enforcement action is a last resort after multiple notifications and extensions given to the company to settle its obligations,” a KIRS spokesperson stated.

Impact on Max Air Operations

The sealing of Max Air’s office in Kano has disrupted operations, including ticket sales and customer services. Max Air, a prominent airline in Nigeria, serves domestic and international routes, making Kano one of its critical hubs.

In a statement, the airline expressed surprise at the development, claiming it was unaware of any unresolved tax issues. It added that efforts were underway to engage with the KIRS to resolve the matter amicably and resume normal operations.

Stakeholders React

The incident has drawn mixed reactions from stakeholders, with some supporting the government’s strict stance on tax compliance and others calling for a more collaborative approach to address disputes.

“While tax compliance is essential, shutting down businesses can have broader economic consequences, especially in a city like Kano that depends on aviation for commerce,” said economic analyst Ibrahim Danjuma.

Intensified Revenue Drive in Kano

The enforcement action against Max Air reflects Kano State’s broader strategy to boost internally generated revenue (IGR). The state has faced declining federal allocations, prompting it to tighten tax collection measures.

In recent months, KIRS has targeted several companies for tax evasion, issuing compliance deadlines and warnings before taking enforcement actions. The agency has also introduced technology-driven systems to track and improve tax collection efficiency.

Path to Resolution

Tax experts suggest that both parties seek a negotiated settlement to avoid prolonged disruptions. They also stress the need for businesses to maintain transparent tax records and engage proactively with revenue authorities to prevent such conflicts.

As discussions between Max Air and KIRS progress, the incident underscores the importance of tax compliance for businesses and the role of government in ensuring fair and consistent enforcement.