Lagos Govt Seals Chinese Firm, Others For Refusing To Pay Tax

Lagos State Internal Revenue Service (LIRS) has sealed a Chinese firm and 15 other hospitality firms for failing to meet up with their tax submission deadline.

The affected companies which include a Chinese firm, restaurants, hotels, and guest houses, were shut down for not meeting up with the March 31 deadline for submission of tax returns.

The LIRS Director of Legal Services, Mr Seyi Alade, disclosed this during the state-wide enforcement that the state government had resolved to wield the stick on defaulters who insist on shortchanging the state government.

Alade noted that LIRS had for some time suspended the shutting of corporate organizations and hospitality firms over unpaid taxes.

“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.

“The LIRS observed that the tax liabilities of the affected firms covered from 2013 to 2020 and 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.

The LIRS Director, called on companies to comply with their tax payment as the state government is working tirelessly to provide a conducive environment for businesses in the state.

The companies sealed include 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.

Alade, also, explained that some of the affected firms made payments regarding their liabilities in the course of the enforcement and paid an additional N250, 000 as the cost of the seizure.

Recall that the Lagos State Government, on August 2020, announced additional tax incentives and reliefs for businesses and individuals in the state, as part of measures aimed at reducing the burden on taxpayers amid the Covid-19 pandemic.

The additional tax incentives are part of several measures to mitigate the impact of the coronavirus pandemic on taxpayers in Lagos and ensure business continuity.

The government had earlier given 3 months extension of the deadline for filing annual returns from March 31 to June 30, 2020.

The LIRS Director had claimed that less than 65% of the corporate organizations operating in the state paid taxes, saying that many of them operated without any tax remittance to the government.