Lagos to ensure taxable adults pay tax, shuts 16 companies for tax evasion ─LIRS

*The Lagos State Internal Revenue Service reiterates its mission is to ensure that every taxable adult resident in the state is captured into the tax net

Emmanuel Akosile | ConsumerConnect

For the firms’ failure to pay consumption taxes, the Lagos State Internal Revenue Service (LIRS) has resumed its tax law enforcement and sealing of erring companies and hospitality organisations in the state.

ConsumerConnect learnt Mr. Seyi Alade, Director of Legal Services at LIRS, who disclosed this development during the enforcement exercise in Lagos, said the agency had resolved to wield the stick against defaulters who insist on shortchanging the state government.

The Director of Legal Services stated that LIRS suspended for some time shutting of corporate organisations and hospitality firms over unpaid taxes.

According to him, the affected companies had failed to meet up with March 31 deadline to settle their tax arrears.

He said the firms shut down were hospitality firms, including restaurants, hotels and guest houses over tax liabilities involving the affected firms covered from 2013 to 2020.

The agency’s Director listed the sealed companies to include Café Trance, Maple Cottage, Imperial Chinese Cuisine, New World Inn, Inspiro Galaria, Grace Garden Event, Cristabol Place, Queens Park Event Centre, Axor Suites and Blue Moon Hotel.

Others are Citi View Hotel, Kamal’s Crib, 7th Heaven, and Infinity Platinum Bar and Restaurant.

Alade explained: “Now, the service has resumed sealing of firms particularly the hospitality firms; it is committed to continue the exercise until full compliance with tax payment and remittance is achieved.

“Before LIRS embarks on sealing, it must send two letters to the management of the affected firm, reminding it of tax liabilities.

“Both the demand notice and letter of intention to distrain were sent to the management of the hospitality firms but they failed to act.”

He disclosed that some of the affected firms made payments regarding their liabilities in the course of the distrain/enforcement, and even paid additional N250,000 as the cost of the distrain.

Less than 65 percent of the corporate organisations operating in the state, he stated, paid taxes.

Alade said that many of them operate without any tax remittance to the government.

While urging companies to ensure up-to-date tax payment, Alade said that the government was working tirelessly to provide a conducive environment for businesses in the state.

The Director of Legal Services of LIRS also noted that the tax agency is deploying an aggressive approach to ensure that all taxes are collected to help the state carry out its developmental projects for the benefit of Lagosians in particular and other Nigerians at large.

LIRS was currently running an initiative called ‘IBILE’ to get more tax payers into the tax net, said he.

The “IBILE” strategy, Alade stated, is an electronic platform that represents the divisions in Lagos – Ikorodu, Badagry, Ikeja, Lagos and Epe (IBILE).

He stressed that the state tax agency is profiling both individuals and corporate entities on a daily basis to get more people into the tax net.

“Our mission is to ensure that every taxable adult resident in Lagos State is captured into the tax net,” he added.

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