Less than 65 percent of corporate organisations operating in Lagos state have paid their taxes, while many of them operate without any tax remittance to the government.
Seyi Alade, director of legal services, Lagos Internal Revenue Service (LIRS), made the disclosure during the agency’s state-wide sealing of companies and hospitality firms over unpaid consumption taxes.
According to Alade, the tax law enforcement organisation had, prior to the action, suspended shutting of corporate organisations and hospitality firms to enable them comply with the March 31 deadline but the affected companies insisted on “shortchanging’’ the government.
“Now that 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,” he added.
The LIRS director noted that the 16 firms sealed were restaurants, hotels and guest houses which included; Café Trance, Maple Cottage, Imperial Chinese Cuisine, New World Inn, Inspiro Galaria, Grace Garden Event, Cristabol Place, Queens Park Event Centre, Axor Suites, Blue Moon Hotel, Citi View Hotel, Kamal’s Crib, 7th Heaven and Infinity Platinum Bar and Restaurant.
He explained that the tax liabilities of the affected firms covered from 2013 to 2020, adding that before the action was taken, two letters were sent to the management of the affected hospitality firms, reminding them of tax liabilities but they failed to comply.
Alade also stated that the government was working tirelessly to provide a conducive environment for businesses in the state, while LIRS is deploying an aggressive approach to ensure that all taxes are collected to help the state carry out its developmental projects for the benefit of Lagosians and the country at large.
Alade said that LIRS was currently running an initiative called ‘IBILE’ to get more tax payers into the tax net. The “BILE strategy, he explained, is an electronic platform that represents the divisions in Lagos – Ikorodu, Badagry, Ikeja, Lagos and Epe (IBILE) and is expected to aid the agency in profiling both individuals and corporate entities on a daily basis to ensure that every taxable adult resident in Lagos State is successfully captured.