Tax Evasion: Lagos Shuts 72 Companies

The Lagos State Internal Revenue Service (LIRS) has sealed 72 companies in the first quarter of the year for failure to remit N552.6 million income taxes of workers to the state government.

Mrs. Folasade Coker-Afolayan, the Head of Distrain Unit of LIRS, gave the outstanding income tax profile in an interview on Monday in Lagos.

Coker-Afolayan said that 23 of the firms were sealed in January for failing to remit N326.6 million to the state government.

She added that another 21 firms were closed in February for failing to remit more than N134 million tax liabilities.

“The remaining 28 companies were closed in March for failing to remit more than N92 million also to the state government,” she said.

According to her, the affected companies included those in the manufacturing, media, office, eatery, printing press, energy, tourism, hotels and hospitality sub-sectors.

Coker-Afolayan said tax payment was a civic responsibility, stressing that the proceeds were being used to fund government projects.

“Tax is a civic responsibility of everyone. It enables government to function effectively to provide infrastructure and improve standard of living of the people,” she said.

Coker-Afolayan urged tax payers to remit their taxes promptly, stressing that the revenue service would continue to sanction tax defaulters in the state.

She also warned tax payers not to break government seals as it constituted an offence.

The LIRS closed 250 companies which failed to remit workers’ personal income taxes which amounted to N2.6b in 2013.