LIRS shuts down 34 companies, 23 hotels for tax evasion [LIST]

Wednesday, 01 November 2023 11:49

LIRS shuts down 34 companies, 23 hotels for tax evasion [LIST]

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

This is according to a statement by Monsurat Amasa-Oyelude, head of corporate communications at LIRS, where she stated that 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 added 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 centers,” Alade said.

“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,” LIRS’ director of legal services said.

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 further 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

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

Seven Six & Ten Limited