Lagos seals 6 coys over tax de­fault

Daily Trust - - NEWS - From Femi Aki­nola, Lagos

The Lagos State In­ter­nal Rev­enue Ser­vice (LIRS) yes­ter­day sealed up six com­pa­nies over non remit­tance of taxes due to the state gov­ern­ment to­talling over N50 mil­lion.

The state’s of­fi­cial tax col­lec­tor also said it was set to be­gin crim­i­nal pros­e­cu­tion of all tax de­fault­ers to en­sure that cul­prits face the full wrath of the law.

Ex­ec­u­tive Chair­man of LIRS, Mr. Olu­fo­larin Ogun­sanwo who dis­closed this to jour­nal­ists, said the com­pa­nies were sealed in ac­cor­dance with pro­vi­sions of Sec­tion 104 of the Per­sonal In­come Tax Act 2004 LFN (as amended in 2011) and would not be re-opened for busi­ness un­til all un­remit­ted taxes were paid to the purse of the state cof­fers. He didn’t name the com­pa­nies.

Ogun­sanwo also warned other tax de­fault­ing com­pa­nies, es­pe­cially em­ploy­ers of labour, to re­frain from tax eva­sion, adding that the present gov­ern­ment had zero tol­er­ance for tax eva­sion.

The LIRS head said un­der the Per­sonal In­come Tax Act, a tax­able per­son was statu­to­rily re­quired to file a re­turn of in­come for the pre­ced­ing year at the ex­pi­ra­tion of 90 days from the com­mence­ment of ev­ery year of as­sess­ment, while em­ploy­ers of labour are re­quired to file all emol­u­ments paid to their em­ploy­ees for the pre­ced­ing year, not later than 31st of Jan­uary each year.

“In ad­di­tion to that, em­ploy­ers will also be re­quired to fur­nish the LIRS with the salary pro­jec­tion of all staff for the cur­rent year. The im­pli­ca­tion of which is that a tax­able per­son or cor­po­rate or­gan­i­sa­tion who has not filed his/its tax re­turns with LIRS by the stip­u­lated date is in breach of the pro­vi­sions of the law, which is a crim­i­nal of­fence that is pun­ish­able un­der the tax laws,” he said.

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