28 C
Friday, June 5, 2020
Home Business Lagos closes 16 companies over N126.19 million tax evasion

Lagos closes 16 companies over N126.19 million tax evasion

The Lagos State Internal Revenue Service (LIRS) on Friday announced that it had closed 16 companies in the state over alleged failure to remit about N126.19m consumption tax.

The organisation’s Director of Legal Services, Mr Seyi Alade, told newsmen in Lagos that the companies’ tax liabilities were from 2014 to 2016.

Alade,who spoke with newsmen during LIRS state-wide tax law enforcement exercise, added that the companies were audited for the periods, but had not made the payments to the State Government.

According to him, the 16 companies have been closed down, and prohibited from operation until they paid the taxes for the period.

“The affected companies failed to pay the established liabilities despite the long period of time the agency gave them to regularise their tax status,’’ he said.

He said that four of companies that admitted their tax liabilities made their payments and an additional payment of N100,000 each as distress cost to LIRS.

Alade called on companies and taxpayers in the state to update their tax payments and obligations to avert disruption of their operations and additional distress cost.

The director said that LIRS had sent several notices to the affected companies before embarking on an enforcement exercise.

“Before LIRS embarks on such exercise, it must have sent at least two letter of notices to the management of the affected firms reminding them of their tax liabilities.

“The Demand Notice expiration is 30 days, while the Letter of Intention expires seven days after issuance.

“So, before now both the demand notice letter and the letter of intention have been sent to the management of the companies which they failed to act on,” he said.

Alade said that the LIRS enforcement team had been repositioned to effectively track companies and individuals who evaded tax payments in the state.

He appealed to Lagos residents to cooperate with the government by filling their tax returns and to promptly pay their assessed taxes.

According to him, the LIRS has made tax compliance very easy for the taxpayers through its recent launch of the Electronic Tax platform.

Alade urged taxpayers to make use of this platform for their comfort and ease of compliance with their various tax obligations.

Mr Damola Falola,, the Business Development Manager of Tyttlo Event Centre, one of the affected companies, however, said that the company did not receive any Demand Notice letter from LIRS.

Falola, who admitted the company’s tax liabilities, said that the LIR’s action took them by surprise, adding that the company would soon meet with LIRS for reconciliation and payment.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -

Most Popular

Churches, Mosques get date for limited resumption in Lagos

The Lagos State Government has given June 19 and 21, 2020 as dates for Mosques and Churches in the state to resume...

Report rape cases in your vicinity, NAPTIP DG tells Nigerians

The National Agency for the Prohibition of Trafficking in Persons has urged Nigerians to report cases of rape within their vicinity to...

Rape: Reps reject castration of rapists

Members of Nigeria’s House of Representatives have killed a motion seeking to recommend castration for rapists. The House, at...

Uti denies rape allegations, threatens to sue

Big Brother Africa 5 winner Uti Nwachukwu has denied rape allegations levelled against him by Kambili Korie. Earlier, on...

Recent Comments