Why Lagos Govt Shut Down Protea Hotel


The Lagos State Internal Revenue Service on Tuesday, August 24, 2016 shut down Protea Hotel, close to Kuramo Waters, over alleged tax evasion.

According to Punch, the hotel failed to remit N11.07million personal income taxes deducted from workers’ salaries.

The Head, Distrain Unit of LIRS, Mrs Ajibike Oshodi-Sholola, made the development known during a statewide tax law enforcement exercise in the state.

Besides, the hotel was earlier sealed by the service over evasion of N148.88million consumption and hotel occupancy taxes on June 9, 2016.

The hotel broke the seal without LIRS’ consent, payment of the tax liabilities or due resolution of the issue.

Oshodi-Sholola said the tax liabilities were for 2012 tax audit year.

She said, “Before LIRS gets court order to seal a company, it usually sends at least two letters of notice to the management of the affected firms reminding them of the tax liabilities.

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“So, both the demand notice letter and letter of intention to distrain were sent to the management of the hotel, but they failed to act on them.”

Oshodi-Sholola, who led the enforcement team, said that it took the team over five hours to evacuate the management of the hotel out of the premises.

She said: “It was a difficult task before the management of the hotel, particularly its chairman, to leave the hotel for the team to properly seal it.”

However, the hotel Chairman, Mr Ajibola Aribisala, denied receiving any notice or letter from LIRS.

He said: “We have not received any recent letter from LIRS in respect to the company’s staff personal income tax.

“I am ready to sue LIRS for this insult.”


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