A Chinese firm and sixteen hospitality firms were on Monday shut down by the Lagos State Internal Revenue Service (LIRS) over unpaid consumption taxes after it resumed the enforcement of the state’s tax laws.
This was made public by the LIRS Director of Legal Services, Mr Seyi Alade, during the state-wide enforcement that the government had resolved to wield the stick on defaulters who insist on shortchanging the state government.
The Chinese firm, restaurants, hotels and guest houses, were shut down for failing to meet up with the March 31 deadline for submission of tax returns.
Alade stated that for some time, the LIRS suspended the shutting of corporate organisations and hospitality firms over unpaid taxes.
He said, “Now, the service has resumed sealing of firms particularly the hospitality firms; it is committed to continuing the exercise until full compliance to tax payment and remittance are achieved.”
Speaking further, Alade said the sealed companies include Café Trance, Maple Cottage, Imperial Chinese Cuisine, New World Inn, Inspiro Galaria, Grace Garden Event, Cristabol Place, Queens Park Event Centre, Axor Suites and Blue Moon Hotel.
Others are Citi View Hotel, Kamal’s Crib, 7th Heaven and Infinity Platinum Bar and Restaurant.
Alade said the tax liabilities of the affected firms covered from 2013 to 2020.
He said, “Before LIRS embarks on sealing, it must send two letters to the management of the affected firm, reminding it of tax liabilities. Both the demand notice and letter of intention to distrain were sent to the management of the hospitality firms but they failed to act.’’
He called on companies to ensure up-to-date tax payment as the state government was working tirelessly to provide a conducive environment for businesses in the state.
He disclosed that 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, however, pointed out that some of the affected firms made payments regarding their liabilities in the course of the distrain/enforcement and paid an additional N250,000 as the cost of the distraint.