The non-payment of personal income taxes by employees and consumption taxes by hotel sector operators to the Lagos State Government has resulted in the closure of 34 corporate organizations by the Lagos State Internal Revenue Service.
In a statement released on Tuesday, Monsurat Amasa-Oyelude, Head of Corporate Communications at LIRS, said that Mr. Seyi Alade, Director of Legal Services at LIRS, made this declaration during a state-wide tax law enforcement exercise that the Service held in Lagos on Monday.
Avaya Nigeria Ltd., Gladstone Tech Ltd., Kurioucity Ltd., Medilag Ventures Ltd., Future Oilfields, NTS Nigeria Ltd., Med-In Hospital & Pharma Services Ltd., Danvic Petroleum Int’l Ltd., Business Intelligence Technology, and Avaya Nigeria Ltd. are a few of these companies, according to the statement.
During the same operation, 23 hotels, restaurants, and event facilities were also closed 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,” it added.
Alade reported that the tax liabilities of these companies and hotels amounted to more than N356.12m. He said 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.
“However, certain companies and hotels chose to engage in tax evasion,” he said. Therefore, the renewed enforcement activities of the Service were targeted at such companies, restaurants, hotels, and event centres.
He emphasised that the primary goal was 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 Lagos State.
Alade said, “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 issued a warning that failing to file tax returns or engaging in tax evasion would considered criminal offences that may result in financial penalties and, in some cases, custodial sentences upon conviction.
The agency said it was currently prosecuting some high-net-worth individuals and companies that failed to file their returns. He said courts had issued bench warrants for some taxpayers in this category and three arrests had been made, pursuant to these warrants.
“They are Platinum Apartments & Suites, The Moonlight Place Enterprises and Jezreel Nursery and Primary School,” he said.
