ternal Revenue Service (LIRS) has closed down 34 corporate organisations for failing to remit taxes worth about N356.12 million to the Lagos State Government.

Tax Debt: LIRS Shuts 34 Companies For Tax Evasion

The Lagos State Internal Revenue Service (LIRS) has closed down 34 corporate organisations for failing to remit taxes worth about N356.12 million to the Lagos State Government.

The LIRS said the affected companies failed to remit their employees’ Personal Income Taxes and Consumption Taxes by operators in the hospitality sector.

Mr Seyi Alade, Director, of Legal Services, LIRS, disclosed this in a statement signed by Mrs Monsurat Amasa-Oyelude, Head, Corporate Communications, LIRS on Tuesday in Lagos.

Alade listed the companies to include 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.,

Also, Kurioucity Ltd., Medilag Ventures Ltd., Future Oilfields, and Seven Six & Ten Ltd. were affected.

He added that 23 hotels, restaurants, and event facilities were also closed for failure to deduct and remit consumption taxes.

These businesses, the LIRS legal head stated, were Blitz Suites & Hotel, Offshoroomz Hotel, God’s Grace Hotel, De Orange Place Ltd., De Santos Hotel, Kentade Hotel Ltd., Chamcee, and Chelsea Suites.

Others are 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.

In addition to the above are Rely Maritime Ltd, 4 Seasons Hotel, Dream Land Hotel, 343 North Restaurant and Lounge, and Jade Palace Chinese Restaurant.

Alade reported that the tax liabilities of these companies and hotels, which amounted to more than N356.12 million, have caused the Lagos State Government loss of revenue.

“The agency had previously reduced its enforcement activities to promote voluntary compliance by taxpayers.

“However, certain companies and hotels chose to engage in tax evasion.

“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.

“Therefore, the renewed enforcement activities of the Service are targeted at such companies, restaurants, hotels, and event centres,” he said.

Alade emphasised the need for compliance in tax remittances to enable the state government to carry out projects intended for the well-being of the vast populace resident in Lagos.

He reiterated that failure to file tax returns or engaging in any form of tax evasion were considered criminal offences that may result in financial penalties and, in some cases, custodial sentences upon conviction.

He added that the agency was currently prosecuting some high-net-worth individuals and companies that failed to file their returns.

According to him, the courts have issued bench warrants for some taxpayers in this category and three arrests have been made under these warrants. What Moody’s Ratings Downgrade Means for the Market