Home NEWS Lagos Closes Down 34 Organisations, 23 Hotels, Others Over N356 Million Tax...

Lagos Closes Down 34 Organisations, 23 Hotels, Others Over N356 Million Tax Evasion 

Jide Sanwo Olu
The Lagos State Government has shutdown 34 corporate organizations and 23 hotels, restaurants, and event facilities on issues relating to tax evasion, to the tune of over N356 million.
While the corporate organisations were closed down for failing to remit Personal Income Taxes of their employees and for non-remittance of Consumption Taxes by operators in the hospitality sector to the Lagos State Government, hotels and others were closed for failure to deduct and remit Consumption taxes.
The State Internal Revenue Service (LIRS), in a statement today, October 31, by the Head of the Corporate Communications, Monsurat Amasa – Oyelude, listed the defaulters to include 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.
The list of hotels, restaurants and event facilities affected also includes 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 Palace Chinese Restaurant.
The statement quoted the Director of Legal Services of LIRS, as saying, while addressing a state-wide tax law enforcement exercise, that the tax liabilities of these companies and hotels amounted to more than N356.12 million.
He said that their actions have caused the State Government loss of revenue.
He said 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 enforcement activities of the Service are targeted at such companies, restaurants, hotels, and event centres.”
He emphasized 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 vast populace resident in Lagos State.
Alade said 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 warned 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 Agency is currently prosecuting some High-net-worth individuals and companies that failed to file their Returns, he said courts have issued Bench 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 Nursery and Primary School.
He warned that the enforcement exercise shall be a continuous one and it shall be visited on all erring companies, hotels, restaurants, and Individuals in the State if they refuse to regularize their tax positions immediately or if they fail to comply with all extant tax laws operational in Lagos State.

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