The Lagos State Internal Revenue Service (LIRS) took action on Monday by shutting down 34 corporate organizations for their failure to remit Personal Income Taxes (PIT) owed by their employees. Additionally, these companies faced closure for their non-remittance of consumption taxes within the hospitality sector to the Lagos State Government. This move comes as part of a state-wide tax law enforcement exercise conducted by the LIRS.
Among the companies facing closure were 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.
Simultaneously, 23 hotels, restaurants, and event facilities were also affected by the operation due to their failure to deduct and remit consumption taxes. These establishments included 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.
Seyi Alade, the Director of Legal Services at LIRS, disclosed this development and stated that the collective tax liabilities of these companies and hospitality establishments exceeded N356 million. He also pointed out that these entities’ non-compliance had resulted in a significant loss of revenue for the Lagos State Government.
Mr. Alade explained that the LIRS had previously employed a strategy of reducing enforcement activities to encourage voluntary compliance among taxpayers. However, some companies and hospitality establishments had chosen to evade their tax obligations.
As a result, the LIRS has intensified its enforcement activities, targeting non-compliant firms in the business and hospitality sectors. The primary objective is to ensure the remittance of both Consumption and Personal Income taxes, thereby enabling the Lagos State Government to fund essential projects for the well-being of its residents.
Mr. Alade emphasized, “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.”
Furthermore, Mr. Alade warned that failing to file tax returns or engaging in tax evasion are considered criminal offenses that could lead to financial penalties and, in certain cases, custodial sentences upon conviction. The LIRS remains committed to ensuring that all eligible businesses and establishments fulfill their tax obligations to support the development and progress of Lagos State.