Lagos closes three firms over tax evasion

The Lagos State Internal Revenue Service has closed three companies for failing to remit N3.8m deducted as personal income taxes of their workers to the state government.

Mrs Folasade Coker Afolayan, Head of the Distrain Unit of the LIRS, disclosed this to the News Agency of Nigeria on Wednesday in Lagos.

Coker-Afolayan, who led the enforcement team, said that the companies were closed on March 25 during a state-wide tax law enforcement.

She said that the affected companies’ tax liabilities were for periods between one and two years.

The team leader said the enforcement would continue until taxpayers imbibed the culture of voluntary tax compliance, adding that tax evasion was a criminal act.

She restated that tax payment was a civic responsibility of every citizen, adding that the proceeds were being used by the government to provide infrastructure.

“Tax payment is a civic responsibility for everyone because that is the only way government can provide the necessary infrastructure for citizens and also improve their standard of living,” she said.

Coker Afolayan urged companies to remit their employees’ tax deductions promptly, to avoid their premises being shut.

She said that the tax authority normally sent a demand notice to defaulting companies to notify them of their tax liabilities.

The LIRS official said that a notice of intent had been sent to the affected companies, in accordance with the Personal Income Tax Act Amendment, 2011.

“As to whether they received the notices or not, that is purely an internal matter of the companies,” she said.

Coker Afolayan advised companies operating in the state to remit their taxes promptly, adding that they should not wait until the government enforced the tax laws.

She said that LIRS would continue to sanction tax defaulters.

Coker Afolayan said that it was a criminal offence to break government’s seals on sealed companies.

NAN reports that the LIRS had sealed 44 companies in the last two months over non-remittance of N460.6m in the personal income taxes of their workers.