By Aduragbemi Omiyale
About 34 corporate organisations, including Excellence Hotel, Medilag Ventures, Jade Palace Chinese Restaurant, have been shut down by the Lagos State Internal Revenue Service (LIRS).
The Director of Legal Services of LIRS, Mr Seyi Alade, said the facilities were closed because they failed to remit personal income taxes of their employees to the state government and for the operators in the hospitality, they did not also remit consumption taxes to the appropriate quarters.
Mr Alade further 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.
According to him, the affected firms owe N356.12 million, causing the Lagos State Government a loss of revenue.
He issued a warning that 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.
The tax office director warned that the enforcement exercise would be continuous, noting that the agency will visit all erring companies, hotels, restaurants, and individuals in the state if they refuse to regularise their tax positions immediately or fail to comply with all extant tax laws operational in Lagos State.
He said the agency had previously reduced its enforcement activities to promote voluntary compliance by taxpayers, but some organisations chose to engage in tax evasion.
Mr Alade said the renewed enforcement activities of the service are targeted at such companies, restaurants, hotels, and event centres, stressing that 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 residents.
He stated that the LIRS was currently prosecuting some high-net-worth individuals and companies that failed to file their returns, adding that courts have issued bench warrants for some taxpayers in this category and three arrests have been made.
He listed the other 32 firms sealed by the agency as 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., Future Oilfields, and Seven Six & Ten Limited.
The others are 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, 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.
