The Lagos State Internal Revenue Service (LIRS) has closed 34 corporate organisations for failing to remit Personal Income Taxes of their employees and for non-remittance of consumption taxes by operators in the hospitality sector to the Lagos State Government.
According to a statement on Tuesday by the LIRS Head of Corporate Communications, Monsurat Amasa-Oyelude, LIRS Director of Legal Services, Seyi Alade, announced the shutdown while addressing a state-wide tax law enforcement exercise conducted by the service on Monday.
Alade revealed that the tax liabilities of the affected companies and hotels amounted to over N356.12 million, adding that the development caused the state a huge revenue loss.He lamented that some tax companies and hotel engaged in tax evasion instead of utilising the provision of voluntary compliance.
“Therefore, the renewed enforcement activities of the service are targeted at such companies, restaurants, hotels, and event centres,” the director said.
He added the aim was to ensure compliance with the remittance of consumption and personal income taxes, to enable the state government carry out projects for the well-being of Lagos residents.
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“These companies deduct PIT 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 said.
Alade was also quoted in the statement as saying it was a criminal offence not to file tax returns or engage in tax evasion which might result in financial penalties and, in some cases, custodial sentences upon conviction.
Saying the enforcement would be a continuous exercise, he warned that erring companies, hotels, restaurants, and individuals in the state would be visited if they refused to regularise their tax positions immediately or failed to comply with all extant tax laws operational in Lagos.
The affected companies were 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 hotels included 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.
