The Lagos State Government has made it clear that any business outfit that fails to pay the appropriate taxes to the government would not only be prosecuted but banned from operating in the state.
This came as the state Internal Revenue Service (LIRS) closed down no fewer than six companies which had consistently failed to pay taxes to the state government amounting to cumulative total of over N50 million.
The defaulting companies are Nicon Town Management Company with a tax liability of N36,053,652.89, Marketing Mix and Company Limited with a liability of N10,712,914.15, Hope Valley International Clinic with a liability of 2,389,885.28, BEC Consultants Nigeria Limited with a tax liability of N792,563.47, Goldmine Global Services Limited owing N505,812.73 and Brown Brommel Limited with a liability of N368,159.63.
According to the officials of the state government, these companies have refused to pay their taxes for periods ranging from one to five years (2007 to 2012).
A statement today by the Executive Chairman of LIRS, Mr. Olufolarin Ogunsanwo, said the companies were sealed in pursuant to the provisions of Section 104 of the Personal Income Tax Act 2004 LFN (as amended in 2011) and will not be re-opened for business until all unremitted taxes are paid to the State Government.
He warned defaulting companies, especially employers of labour that the State Governor, Mr Akinwunmi Ambode has zero tolerance for tax evasion, adding that LIRS is set to begin criminal prosecution of all tax defaulters in Lagos State to ensure that culprits are made to face the full wrath of the law.
The LIRS boss said that under the Personal Income Tax Act, a taxable person is statutorily required to file a return of income for the preceding year at the expiration of 90days from the commencement of every year of assessment, whilst any employer of labour is required to file all emoluments paid to its employees for the preceding year, not later than 31st of January each year.
“In addition to that, employers will also be required to furnish the LIRS with the salary projection of all staff for the current year. The implication of which is that a taxable person or corporate organisations who have not filed their tax returns with LIRS by the stipulated date is in breach of the provisions of the law, which is a criminal offence that is punishable under the tax laws.”
He listed such infractions to include, non deduction of taxes (PAYE, Withholding tax etc), non remittance of PAYE taxes deducted from employees, non deduction/remittance of taxes by casual workers, non-filing of tax returns at the stipulated statutory period, under declaration of income, concealment of relevant information (Income, fringe benefits etc) with a view to evading tax, failure to process Electronic Tax Clearance Certificate (e-TCC) cards for employees as a result of non remittance of tax deducted from their emoluments.
Ogunsanwo explained that the LIRS has spent the last ten years on advocacy, publicity and enlightenment programmes on the statutory obligations of the citizenry to voluntarily comply by paying their taxes promptly as prescribed in the constitution of the country and the applicable tax legislations, but in spite of the efforts, many corporate organisations and individuals still engage in several infractions. [myad]
