N91m tax default: Lagos seals 18 hotels, event centres

The Lagos State Internal Revenue Service (LIRS), has shut 13 hotels, restaurants and event centres for failure to pay their taxes due under the Hotel Occupancy and Restaurant Consumption Laws of Lagos State 2009.

The hotels and restaurants were said to be owing the state a sum of N426,976,528.87.

Speaking on the state-wide tax enforcement exercise, the Director Legal Services of the LIRS, Mr. Seyi Alade, warned that defaulting hotels, restaurants and event centres would henceforth face the full wrath of the law, if they failed to deduct and remit their taxes as provided by the law.

While promising to release in due course, the names of the entities affected by the enforcement exercise, Alade said, “Failure to deduct and remit taxes as and when due, attracts very serious penalties that may lead to the sealing, seizure of the goods and chattels, and criminal prosecution of principal officers of recalcitrant entities.”

He said that LIRS usually gives offenders a long rope to pull by issuing multiple notices to the taxpayers to inform; and also reminding them of their tax liabilities, adding that only recalcitrant taxpayers are shut down as in the present case.

He, therefore, urged all business entities operating in the state to ensure prompt remittance of their taxes to avoid costly disruptions of their businesses as a result of their non-compliance.

Benjamin Omoike