Lagos seals oil firm for N4.9bn tax evasion

The Lagos State Internal Revenue Service (LIRS) has sealed BakLang Allianz International Ltd., an oil and gas consultancy firm, for allegedly evading tax to the tune of N4.9 billion.

Mrs Folasade Coker-Afolayan, head, Distrain Unit of LIRS, told NAN that the company defaulted in the remittance of the Personal Income Taxes of their workers.

Coker-Afolayan, who led the team, said that the company’s tax liabilities were between 2004 and 2009.

“We decided to seal Baklang Allianz International Ltd., because it owes the Lagos State Government N4.9 billion,” she said.

“The amount is the unremitted workers’ income tax for six years. The company will not be reopened for business until the tax liability is remitted.”

She said the Distrain Unit of the LIRS had no alternative than to seal the company when the management of the firm failed to respond to several letters from LIRS on the need to remit the tax.

She reiterated that payment of tax is the civic responsibility of individuals and corporate organisations, as it enables government to meet its obligations to the citizens.

The team leader also urged companies to remit their taxes promptly to avoid being sealed.

Reacting to the development, Mr Keem Bakare, managing director of BakLang Allianz International Ltd, said that they had written to LIRS through the company’s legal unit on the need to adjust the alleged tax liability.

Bakare advised the Lagos State government to review its approach in enforcing tax laws.

Between january and May 2014 alone, LIRS sealed 97 companies over alleged tax evasions. The cumulative worth of the unremitted tax to government, mainly personal income tax deducted from workers salary in Lagos State in the period under review, amounted to N627.2 million.

In 2013, it shut 250 companies for not remitting N2.7 billion workers’ personal income tax.