The Lagos State Internal Revenue Service has shut 34 companies and 23 hotels over failure to respectively remit employees’ Personal Income Taxes and consumption taxes.

According to a statement on Tuesday by the LIRS Head of Corporate Communications, Monsurat Amasa-Oyelude, LIRS Director of Legal Services, Seyi Alade, announced the shutdown while addressing a state-wide tax law enforcement exercise conducted by the service on Monday.

Alade noted that the tax liabilities of the affected companies and hotels amounted to over N356.12 million, adding that the development caused the state a huge revenue loss.

He further stated that though the agency previously reduced its enforcement activities to promote voluntary compliance by taxpayers, certain companies and hotels still chose to engage in tax evasion.

“Therefore, the renewed enforcement activities of the service are targeted at such companies, restaurants, hotels, and event centres,” the director said.

He added the aim was to ensure compliance with the remittance of consumption and personal income taxes, to enable the state government carry out projects for the well-being of Lagos residents.

“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,” he said.

Alade was also quoted in the statement as saying it was a criminal offence not to file tax returns or engage in tax evasion which might result in financial penalties and, in some cases, custodial sentences upon conviction.

Saying the enforcement would be a continuous exercise, he warned that erring companies, hotels, restaurants, and individuals in the state would be visited if they refused to regularise their tax positions immediately or failed to comply with all extant tax laws operational in Lagos.

The affected companies were 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 hotels included 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.