Emmanuel Ochayi
In a crackdown on tax evaders, the Lagos State Internal Revenue Service (LIRS) has closed down 34 corporate organizations and 23 hospitality businesses for failing to remit Personal Income Taxes and Consumption Taxes, respectively.
The affected companies and establishments, which include prominent names like NTS Nigeria Ltd., Blitz Suites & Hotel, and Dream Land Hotel, now face legal actions and financial penalties.
Mr. Seyi Alade, the Director of Legal Services at LIRS, made this announcement during a state-wide tax enforcement operation in Lagos on Monday.
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Join our WhatsApp ChannelHe revealed that these businesses collectively owe the state government more than =N= 356.12 million, which has resulted in substantial revenue losses for Lagos.
In his statement, Alade stated, “The Agency had previously encouraged voluntary compliance by taxpayers, but some companies and hotels chose to engage in tax evasion. Our renewed enforcement activities are aimed at such entities, with the primary goal of ensuring compliance with the remittance of Consumption and Personal Income taxes.”
He emphasized that these businesses were legally obligated to deduct Personal Income taxes from employees’ salaries and charge consumption taxes on goods and services purchased by customers, but some firms had withheld these payments for their own gain.
Alade issued a warning, declaring that failing to file tax returns or engaging in tax evasion are criminal offenses that may lead to financial penalties and, in some cases, custodial sentences upon conviction.
Furthermore, he revealed that the Agency is currently prosecuting high-net-worth individuals and companies that failed to file their returns. Bench warrants have been issued for some taxpayers in this category, leading to three arrests, including Platinum Apartments & Suites, The Moonlight Place Enterprises, and Jezreel Nursery and Primary School.
Alade concluded by stating that the enforcement exercise would be ongoing and would apply to all non-compliant companies, hotels, restaurants, and individuals within Lagos State who fail to regularize their tax positions or comply with existing tax laws. The crackdown aims to secure revenue for projects that benefit the residents of Lagos State.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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