Mohammed Shosanya
The Lagos State Internal Revenue Service (LIRS) has shut 34 corporate organizations for failing to remit Personal Income Taxes of their employees in the state.
The agency also took the action against the companies for non-remittance of consumption taxes by operators in the hospitality sector to the state government.
A statement issued by Monsurat Amasa-Oyelude, LIRS Head of Corporate Communications on Tuesday said the affected companies include NTS Nigeria Ltd., Med-In Hospital & Pharma Services Ltd., Danvic Petroleum Int’l Ltd., Business Intelligence Technology, Avaya Nigeria Ltd., Gladstone Tech Ltd., Courier Plus Services Ltd., Kurioucity Ltd., Medilag Ventures Ltd., Future Oilfields, and Seven Six & Ten Limited.
The statement quoted that during the operation, 23 hotels, restaurants, and event facilities were also sealed for failure to deduct and remit consumption taxes.
These businesses include Blitz Suites & Hotel, Offshoroomz Hotel, God’s Grace Hotel, De Orange Place Ltd., De Santos Hotel, Kentade Hotel Limited, Chamcee, Chelsea Suites, Falode Hotels, High Climax Hotel, Chez Moi Apartment, Excellence Hotel, Bereans Venture (Tantalizer Ebute Metta), La Avril Hotel & Suites, De Orange Place Ltd., Milaco Guest House, New World Inn, Model Motels Ltd, Rely Maritime Ltd, 4 Seasons Hotel, Dream Land Hotel, 343 North Restaurant and Lounge, and Jade Palace Chinese Restaurant.
Mr. Seyi Alade, the Director of Legal Services LIRS, made this announcement while addressing a state-wide tax law enforcement exercise conducted by the Service in Lagos on Monday.
He disclosed that the tax liabilities of these companies and hotels amounted to more than N356.12 million,adding that their actions had caused the state government loss of revenue.
He explained that the agency had previously reduced its enforcement activities to promote voluntary compliance by taxpayers, but that certain companies and hotels chose to engage in tax evasion.
He emphasized that the primary goal is to secure compliance with the remittance of Consumption and Personal Income taxes, enabling the Lagos State Government to carry out projects intended for the well-being of the vast populace resident in the state.
Mr. Alade further reiterated that “these companies deduct Personal Income taxes from their employees’ salaries at the end of each month, and charge consumption taxes on goods and services purchased by customers.
“Unfortunately, some unpatriotic firms choose to withhold these payments, illegally converting the funds for their own use.”
He warned that failing to file tax returns or engaging in tax evasion are considered criminal offences that may result in financial penalties and, in some cases, custodial sentences upon conviction.
The agency said it was prosecuting some high-net-worth individuals and companies who failed to file their returns.
It said courts had issued bench warrants for some taxpayers in this category and three arrests had been made pursuant to the warrants, and “they are Platinum Apartments & Suites, The Moonlight Place Enterprises and Jezreel Nursery and Primary School”.