Tax Evasion: Lagos shuts down 16 companies
The Lagos State Internal Revenue Service (LIRS) shut down 16 companies for tax evasion.
LIRS Director of Legal Services Seyi Alade, during statewide enforcement, stated that the Lagos government had resolved to wield the stick on defaulters shortchanging the state.
Mr Alade noted that LIRS had suspended the shutting down of the corporate organisations and hospitality firms over unpaid taxes.
He added that the affected companies failed to meet up with March 31 deadline.
“Now, the service has resumed sealing of firms, particularly the hospitality firms; it is committed to continue the exercise until full compliance to tax payment and remittance are achieved,” Mr Alade stated.
He said the firms sealed were restaurants, hotels, and guest houses.
Mr Alade listed the sealed companies to include Café Trance, Maple Cottage, Imperial Chinese Cuisine, New World Inn, Inspiro Galaria, Grace Garden Event, Cristabol Place, Queens Park Event Centre, Axor Suites, and Blue Moon Hotel.
Others included Citi View Hotel, Kamal’s Crib, 7th Heaven, and Infinity Platinum Bar and Restaurant.
Mr Alade said the tax liabilities of the affected firms covered from 2013 to 2020.
“Before LIRS embarks on sealing, it must send two letters to the management of the affected firm, reminding it of tax liabilities.
“Both the demand notice and letter of intention to distrain were sent to the management of the hospitality firms, but they failed to act,” he explained.
Mr Alade claimed that less than 65 per cent of the corporate organisations operating in the state paid taxes, saying that many of them operated without any tax remittance to the government.
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