The Lagos State Internal Revenue Service (LIRS) said that it has shut down the operations of Courier Plus Services, Excellence, De Santos Hotels and 30 other corporate organisations for allegedly failing to remit Personal Income Taxes of their employees and for non-remittance of Consumption Taxes by operators in the hospitality sector to the Lagos State Government.
The Director of Legal Services LIRS, Mr. Seyi Alade, disclosed this while addressing a state-wide tax law enforcement exercise conducted by the Service on Monday in Lagos.
Alade said that the tax liabilities of these companies and hotels amounted to more than N356.12 million and that their actions have caused the State Government loss of revenue.
He noted that the Service had previously reduced its enforcement activities to promote voluntary compliance by taxpayers but that certain companies and hotels chose to engage in tax evasion.
This, he said, prompted the renewed enforcement activities of the Service to be targeted at such companies, restaurants, hotels and event centres.
Alade said that the objective of the renewed enforcement is to secure compliance with the remittance of Consumption and Personal Income taxes to enable the state government carry out projects intended for the well-being of residents of Lagos State.
“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 choose to withhold these payments, illegally converting the funds for their own use,” he said.
The Director of Legal Services warned that failing to file tax returns or engaging in tax evasion are considered criminal offences that may result in financial penalties and that in some cases, custodial sentences upon conviction.
The Service, he informed, is currently prosecuting some High-net-worth individuals and companies that failed to file their Returns and that courts have issued Bench Warrants for some taxpayers in this category and that three arrests have been made pursuant to these Warrants.
He listed the organisations to include: Platinum Apartments & Suites, The Moonlight Place Enterprises and Jezreel Nursery and Primary School.
The enforcement exercise, said shall be a continuous one and that it shall be visited on all erring companies, hotels, restaurants and individuals in the state if they refuse to regularise their tax positions immediately or if they fail to comply with all extant tax laws operational in Lagos.
Some of the companies that evaded tax according to LIRS are: 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.
The LIRS also stated that during the enforcement exercise 23 hotels, restaurants and event facilities were also closed for failure to deduct and remit Consumption taxes.
These 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.
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