Following failure to remit the Personal Income Taxes (PIT) of their employees and for non-remittance of consumption taxes, the Lagos State Internal Revenue Service (LIRS) has closed 34 companies in the state, including 23 hospitality sector entities.
Some of the affected companies are 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.
Also, 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, and Chez Moi Apartment.
Others comprised 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.
Speaking on the clampdown exercise while addressing a state-wide tax law enforcement exercise conducted by the Service in Lagos, the LIRS’ Director of Legal Services, Seyi Alade, explained that the tax liabilities of the affected companies and hotels amounted to more than N356.12 million, thereby causing the State Government loss of revenue.
According to him, the revenue service has previously reduced its enforcement activities to encourage voluntary compliance by taxpayers.
Alade, however, pointed out that some companies and hotels chose to engage in tax evasion, hence the renewed enforcement activities of the Service targeted at such companies, restaurants, hotels, and event centres.
The director maintained that the primary goal of the clampdown on the defaulting companies was to secure compliance with the remittance of Consumption and Personal Income taxes, thereby enabling the government to carry out projects intended for the well-being of the vast populace resident in Lagos State.
Alade reiterated that “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 added.
He warned business owners that failing to file tax returns or engaging in tax evasion would be considered criminal offences that may result in financial penalties and, in some cases, custodial sentences upon conviction.
