The Lagos State Internal Revenue Service (LIRS) has taken decisive action by closing down 34 corporate entities for their failure to remit taxes totalling approximately N356.12 million to the Lagos State Government. These companies were found to be in default for non-payment of employees’ personal income taxes and consumption taxes within the hospitality sector.
According to Mr. Seyi Alade, Director of Legal Services at LIRS, these closures were a necessary measure to address the issue of tax non-compliance. He noted, “The agency had previously reduced its enforcement activities to promote voluntary compliance by taxpayers. However, certain companies and hotels chose to engage in tax evasion.”
Among the 34 corporate entities affected by the closures were NTS Nigeria Ltd., Med-In Hospital and Pharma Services Ltd., Danvic Petroleum Int’l Ltd., Business Intelligence Technology, Avaya Nigeria Ltd., Gladstone Tech Ltd., and Courier Plus Services Ltd. The list also included Kurioucity Ltd., Medilag Ventures Ltd., Future Oilfields, and Seven Six & Ten Ltd.
In addition to these companies, 23 hotels, restaurants, and event facilities were also shuttered for their failure to deduct and remit consumption taxes. Some of the affected establishments were Blitz Suites & Hotel, Offshoroomz Hotel, God’s Grace Hotel, De Orange Place Ltd., De Santos Hotel, Kentade Hotel Ltd., and Chamcee. Others included Chelsea Suites, Falode Hotels, High Climax Hotel, Chez Moi Apartment, Excellence Hotel, and Bereans Venture (Tantalizer Ebute Metta), among others.
These non-compliant businesses collectively owed more than N356.12 million in taxes, resulting in a significant loss of revenue for the Lagos State Government.
Alade emphasised the importance of tax compliance, stating, “The renewed enforcement activities of the Service are targeted at such companies, restaurants, hotels, and event centres.” He further noted that the revenue generated from taxes is vital for funding projects that benefit the extensive population residing in Lagos.
Alade reiterated that failure to file tax returns or engaging in tax evasion are considered criminal offences, which can lead to financial penalties and, in some cases, custodial sentences upon conviction. He also highlighted that the LIRS is actively prosecuting high-net-worth individuals and companies that have failed to file their returns, with some cases resulting in bench warrants and arrests.
The closure of these non-compliant businesses underscores the Lagos State Government’s commitment to ensuring tax compliance and maintaining a steady revenue stream for public welfare and development projects.