The Lagos State Internal Revenue Service (LIRS) has taken action against 34 corporate entities due to their failure to remit taxes amounting to approximately N356.12 million to the Lagos State Government.
LIRS revealed that these affected companies neglected their obligations to remit their employees’ Personal Income Taxes and the Consumption Taxes incurred by establishments in the hospitality sector. This disclosure was made by Mr. Seyi Alade, the Director of Legal Services at LIRS, in a statement signed by Mrs. Monsurat Amasa-Oyelude, Head of Corporate Communications at LIRS.
The list of affected companies comprises NTS Nigeria Ltd., Med-In Hospital and 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 Ltd.
In addition, 23 hotels, restaurants, and event facilities were also closed down for failing to withhold and remit consumption taxes. These establishments encompass Blitz Suites & Hotel, Offshoroomz Hotel, God’s Grace Hotel, De Orange Place Ltd., De Santos Hotel, Kentade Hotel Ltd., 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.
The tax liabilities of these companies and hospitality establishments, totaling over N356.12 million, have resulted in substantial revenue loss for the Lagos State Government.
LIRS had initially aimed to encourage voluntary tax compliance by taxpayers and had reduced its enforcement actions. However, some companies and hotels opted for tax evasion. These businesses withheld Personal Income taxes from their employees’ salaries and levied consumption taxes on customer purchases. Consequently, LIRS has reinstated its enforcement activities with a focus on such companies, restaurants, hotels, and event centers.
Alade emphasized the importance of tax compliance in facilitating the state government’s ability to execute projects that enhance the well-being of Lagos residents. He underscored that failure to file tax returns or engage in tax evasion are regarded as criminal offenses that can result in financial penalties and, in certain cases, custodial sentences following a conviction. The agency is currently pursuing legal action against high-net-worth individuals and companies that failed to submit their returns, with court-issued bench warrants for some taxpayers in this category and three arrests made accordingly.
Source: News Agency of Nigeria (NAN)
