Lagos Shut Down 34 Companies Due to N356.12m Tax Debts

Lagos State Internal Revenue Service (LIRS) has closed 34 corporate organizations because they didn’t pay their employees’ income taxes and didn’t follow the rules for charging and remitting consumption taxes in the hospitality sector.

Among the affected companies 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.

In the same operation, 23 hotels, restaurants, and event facilities have also been shut down due to their failure to deduct and remit Consumption taxes.

The Director of Legal Services of LIRS, Mr. Seyi Alade, while addressing a state-wide tax law enforcement exercise conducted by the Service in Lagos, explained that the total tax debts of these companies and hotels exceeded N356.12 million.

He said that these companies collect employees’ Income Taxes monthly and charge Consumption Taxes on customer purchases.

Mr Alade said: “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 use.”

He warned that the enforcement exercise “shall be a continuous one and 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 State.”

Kanyi Daily recalls that the Lagos State Internal Revenue Service (LIRS) had been thrown into crisis as aggrieved staff of the service on Monday, stormed the state House of Assembly complex, Alausa in protest.