LIRS clamps down on tax defaulters

The Lagos State Internal Revenue Service has begun a massive clampdown on corporate tax defaulters and evaders in Lagos.

Just last week, no fewer than 18 hotels and event centres were sealed up under the Hotel Occupancy and Restaurant Consumption Laws of Lagos State 2009.

The affected Hotels and Restaurants were reported to be owing the State a cumulative sum of N91,157,286.75.

Speaking tough on the stand of the state government, the Director of Legal Services of the LIRS, Seyi Alade, gave a stern warning during the statewide tax enforcement exercise that defaulting Hotels, Restaurants and Event Centres would now face the full wrath of the law if they fail to deduct and remit their taxes as provided by the law.

According to Alade, failure to deduct and remit taxes as and when due attracts very serious penalties that may lead to the sealing and the seizure of the goods and chattels of the affected entities.

He said the LIRS gives a long rope by issuing multiple notices to the taxpayers to inform and also remind them of their tax liabilities and only recalcitrant taxpayers are shut down as in the present case.

He therefore urged all business entities operating in the state to ensure prompt remittance of their taxes to avoid the costly disruptions that could be visited on their businesses as a result of a distrain exercise.

Earlier in the year, the Chairman of the LIRS, Folarin Ogunsanwo, had urged Lagosians to comply with the relevant tax laws of the country.

Ogunsanwo said Lagos State will not hesitate to bring to justice any defaulting individual and corporate body as the capacity of LIRS is not in doubt.‎

List of Hotels shut included Zaaz hotel, Cottage hotel 2, Pcadilly Suites, Starfire hotel, Le Parisian, D Yard entertainment, Florida international motel, Suite 29, Taesuites, Nufcam hotel, Peaceland, Larex hotel, Cristabol place, posh Spice, Hotel De Jas, Bec Ind Catering Company, Soul center and Atlantic product limited.