The Lagos State Internal Revenue Service (LIRS) has resumed the sealing of companies particularly hospitality firms over unpaid taxes, as 16 firms were shut during tax law enforcement across the state.
The LIRS Director of Legal Services, Mr Seyi Alade, during the state-wide enforcement son Monday said that the Service has resolved to wield the stick on defaulters who insist on shortchanging the State Government.
Alade said that LIRS suspended the shutting of corporate organisations and hospitality firms over unpaid taxes due to the March 31, 2021 deadline given to taxpayers to pay up.
He, however, said that the tax payers failed to meet the deadline date and were still owing the state government till date hence the resumed
sealing of firms particularly the hospitality firms;
He said the Agency is committed to continuing the exercise until full compliance to tax payment and remittance are achieved,
Alade claimed that less than 65 per cent of the corporate organisations operating in the state paid taxes, adding that many of them operated without any tax remittance to the government.
He advised taxpayers to pay up their taxes, stressing that the government is working tirelessly to provide a conducive environment for businesses to thrive in the state.
According to him, LIRS is deploying an aggressive approach to ensure that all taxes are collected to help the State carry out its developmental projects for the benefit of Lagosians and the country at large.
Alade said that the Service was currently running an initiative called ‘Ibile’ to get more tax payers into the tax net.
The “Ibile” strategy is an electronic platform that represents the divisions in Lagos – Ikorodu, Badagry, Ikeja, Lagos and Epe (IBILE).
Alade said to get more people into the tax net, the agency was also profiling both individuals and corporate entities on a daily basis while also using technology to widen the tax net.
“Our mission is to ensure that every taxable adult resident in Lagos State is captured into the tax net, ” he said.
Alade explained that the enforcement teams had sealed 16 hospitality firms, including restaurants, hotels and guest houses.
He listed the sealed companies to include Café Trance, Maple Cottage, Imperial Chinese Cuisine, New World Inn, Inspiro Galaria, Grace Garden Event, Cristabol Place, Queens Park event centre, Axor Suites and Blue Moon Hotel.
Others include Citi view hotel, Kamal’s Crib, 7th Heaven and Infinity Platinum Bar and Restaurant.
According to him, the tax liabilities of the affected firms covered from 2013 to 2020, were audited for the two years but had yet to make payment.
“Before LIRS embarks on sealing, it must send two letters to the management of the affected firm, reminding it of tax liabilities.
“Both the demand notice and letter of intention to distrain were sent to the management of hospitality firms but they failed to act,” he said.
Some of the affected firms made payments regarding their liabilities in the course of the distrain/enforcement and paid additional N250,000 as the cost of the distrain.
