Economy and Business

BREAKING: Lagos state govt shuts 34 companies over tax debts

The Lagos state government has closed down 34 corporate organizations for failing to remit Personal Income Taxes of their employees and for non-remittance of consumption taxes.

The Lagos State Internal Revenue Service (LIRS) acted on behalf of the government.

A statement by Monsurat Amasa-Oyelude, Head, Corporate Communications, LIRS, listed some of these companies 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.

She further stated that 23 hotels, restaurants, and event facilities were closed for failing to deduct and remit consumption taxes.

The businesses include 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 Seyi Alade, the Director of Legal Services LIRS, as making this announcement while addressing a state-wide tax law enforcement exercise conducted by the Service in Lagos on Monday.

Alade reported that the tax liabilities of these companies and hotels amounted to more than =N= 356.12 million. He said their actions have caused the state government loss of revenue.

He explained that the agency had previously reduced its enforcement activities to promote voluntary compliance by taxpayers.

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 withhold these payments, illegally converting the funds for their own use.”

He also 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.

According to him, 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 comply with all extant tax laws operational in Lagos state.

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