Business

LIRS shuts down 34 companies, 23 hotels for ‘tax evasion’

October 31, 2023 7:45 pm

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The Lagos State Internal Revenue Service (LIRS) has closed down 34 corporate organisations and 23 hotels for failing to remit personal income taxes (PIT) of their employees and consumption taxes, respectively.

In a statement on Tuesday, Monsurat Amasa-Oyelude, LIRS’ head of corporate communications, said Seyi Alade, LIRS director of legal services, disclosed the shutdown while addressing a state-wide tax law enforcement exercise conducted by the service on Monday.

Alade said the tax liabilities of these companies and hotels amounted to more than N356.12 million, adding that this has caused the state a huge loss in revenue.

He said 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 enforcement activities of the Service are targeted at such companies, restaurants, hotels, and event centres,” the director said.

The primary goal is 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.

“These companies deduct PIT 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.”

According to the statement, Alade also said failing to file tax returns or engaging in tax evasion are considered criminal offences that may result in financial penalties and, in some cases, custodial sentences upon conviction.

He warned that the enforcement exercise shall be a continuous one, adding that all erring companies, hotels, restaurants, and individuals in the state will be visited if they refuse to regularise their tax positions immediately or if they fail to comply with all extant tax laws operational in Lagos.

Some of the companies shut down by the service include: