LIRS Shuts 10 Firms Over N45.52m Tax Fraud In August | Independent Newspapers Limited
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LIRS Shuts 10 Firms Over N45.52m Tax Fraud In August

Posted: Sep 5, 2015 at 12:04 am   /   by   /   comments (0)

By Nkasiobi Oluikpe,


The Head of Training Unit of the Lagos State Internal Revenue Service (LIRS), Mrs. Ajibike Oshodi-Sholola,  has stated that, during a state-wide tax law enforcement exercise in August, the LIRS sealed 10 companies August for failure to remit N45.52 million personal income tax of staff to the state government.

She said that the affected companies’ tax liabilities were for the period between 12 months and six years; noting that, six companies were sealed on Aug. 4 for tax evasion amounted to N6.197 million, while four companies were sealed on Aug. 11 for a total of N39. 327 million tax evasion.

Oshodi Sholola explained that out of the 10 firms that were sealed, about seven of them had come to the LIRS office to ratify and pay-off their debts. However, she urged firms operating in the state to regularly remit their taxes to the LIRS to avoid the embarrassment and disruption that comes with dodging of taxes.

She countered claims by some of the defaulting companies that they were neither given fair hearing nor notified by the LIRS before the clampdown by saying: “Tax-payment is a civil responsibility of everyone because it is a major source of government revenue and also the only means government can provide the basic amenities for the citizens to improve their living standards. The LIRS usually sends two letters of notice to the defaulting companies before they embark on a clamp-down.  LIRS had sent tax liabilities demand notice and notice of intent to the affected companies as required by the Personal Income Tax Act Amendment of 2011.

“Each of the letters that we send to the companies is received and acknowledged by either the firm’s management staff or any of the companies.  So, saying that LIRS did not notify them before coming to seal their premises is not an excuse. Normally, firms are not even supposed to wait for anybody to remind them of their statutory obligation of paying tax to the government of the land where they operate,” she said.

The team leader noted that the enforcement would continue until tax-payers imbibe the culture of voluntary tax compliance, adding that tax evasion was a criminal offence. According to her, the companies affected by the last month tax law exercise included hotels, oil and gas firms, a hospital, a real estate firm, among others.