The Lagos State Internal Revenue Service has shut 18 hotels, restaurants and event centers for failure to pay their taxes due under the Hotel Occupancy and Restaurant Consumption Laws of Lagos State 2009.
The Hotels and Restaurants were said to be owing the State a cumulative sum over N91 million.
The affected hotels include Starfire Hotels, Ikeja; Zaaz Hotel Limited, Ikeja; Le Parisian Suites, Opebi; Cottage Guest House Two, Opebi; Suite 29, Ikeja; Bec Ind Catering Company, Ikeja; Hotel De Jas, Oshodi; Florida International Motel, Ajao Estate; Atlantic Product Limited, Victoria Island; Soul Centre, Okota; and Taesuites Limited, Ikoyi.
Others include Larex Hotels Limited, Shomolu; Piccadily Suite, Lekki; D Yard Entertainment, Surulere; Peaceland Hotels, Yaba; Nufcam Hotel Limited, Ojodu Berger; Posh Spice, Surulere; and Cristabol Place, Lekki.
The Director of Legal Services of the LIRS, Seyi Alade, on Friday during the statewide tax enforcement exercise, warned that defaulting Hotels, Restaurants and Event Centers would henceforth face the full wrath of the law if they fail to deduct and remit their taxes as provided by the law.
According to Alade, failure to deduct and remit taxes as and when due attracts very serious penalties that may lead to the sealing and the seizure of the goods and chattels of the affected entities.
He said the LIRS usually gives a long rope by issuing multiple notices to the taxpayers to inform and remind them of their tax liabilities, adding that only recalcitrant taxpayers are shut down as in the present case.
Alade therefore urged all business entities operating in the state to ensure prompt remittance of their taxes to avoid the costly disruptions that could be visited on their businesses as a result of a distrain exercise.
