LIRS Shuts 34 Corporations and 23 Hotels for Tax Noncompliance

The Lagos State Internal Revenue Service (LIRS) has taken stern action against tax noncompliance, announcing the closure of 34 corporate organizations and 23 hotels for failing to remit Personal Income Taxes (PIT) of their employees and consumption taxes.

This move comes as part of a state-wide tax law enforcement exercise conducted by LIRS.

Monsurat Amasa-Oyelude, the head of corporate communications at LIRS, disclosed the shutdown in a statement.

Seyi Alade, LIRS’s director of legal services, made it clear that the tax liabilities of these establishments surpassed N356.12 million, emphasizing the significant revenue loss this noncompliance has caused the state.

While LIRS had previously reduced its enforcement activities to encourage voluntary taxpayer compliance, Alade revealed that certain companies and hotels chose tax evasion over cooperation.

Consequently, the renewed enforcement activities target these entities, including companies, restaurants, hotels, and event centers.

Alade pointed out, “These companies deduct PIT 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.”

In line with the statement, Alade stressed that failing to file tax returns or engaging in tax evasion are considered criminal offenses, which may lead to financial penalties and, in some instances, custodial sentences upon conviction.

Alade issued a stern warning that the enforcement exercise would be continuous, and all noncompliant companies, hotels, restaurants, and individuals in the state would be visited if they failed to rectify their tax positions promptly or comply with existing tax laws in Lagos.

This action reinforces the government’s commitment to upholding tax regulations and ensuring a fair and robust revenue system.