He Lagos State Internal Revenue Service (LIRS) on Monday closed down 34 corporate organizations for failing to remit personal income taxes (PIT) of their employees and for failing to remit consumption taxes by hospitality sector operators to the Lagos State Government.
A LIRS statement listed some of these companies, including 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.
During the same operation, 23 hotels, restaurants and event halls were also closed for not deducting and remitting consumption taxes.
These companies 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 Restaurant Chinese Palace.
Seyi Alade, Director of Legal Services at LIRS, made this announcement while addressing a state-level tax law enforcement exercise conducted by the Service in Lagos on Monday. Alade reported that the tax liabilities of these companies and hotels amounted to over N356 million. He said his actions have caused the state government to lose 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.
Therefore, the renewed service application activities are aimed at such companies, restaurants, hotels and event centers. He stressed that the main objective is to ensure compliance with the remittance of consumption and personal income taxes, enabling the Lagos State Government to carry out projects aimed at the well-being of the large population residing in Lagos State.
Alade further reiterated that “these companies deduct personal income tax from their employees’ salaries at the end of each month and collect consumption taxes on goods and services purchased by customers.
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Unfortunately, some unpatriotic companies choose to withhold these payments, illegally converting the funds for their own use.”
It issued a warning that failing to file tax returns or engaging in tax evasion are considered criminal offenses that can result in financial penalties and, in some cases, custodial sentences upon conviction.
The agency is currently prosecuting some high net worth individuals and companies who did not file their returns, it said the courts have issued arrest warrants for some taxpayers in this category and three arrests have been made pursuant to these warrants, they are Platinum Apartments & Suites, The Moonlight Place Enterprises and Jezreel Daycare and Elementary School.
He warned that the law enforcement exercise will be continuous and will apply to all companies, hotels, restaurants and individuals who make mistakes in the state if they refuse to regularize their tax positions immediately or if they do not comply with all tax laws current. operational in Lagos State.
