LIRS Takes Stringent Action Against Non-Compliance: 34 Companies and 23 Hospitality Businesses Shut Down for Unsettled Tax Debts.

The Lagos State Internal Revenue Service (LIRS) has enforced the closure of 34 corporate organizations and 23 establishments in the hospitality sector for their failure to remit Personal Income Taxes of employees and non-remittance of consumption taxes to the Lagos State Government, accumulating a total tax debt of over N356.12 million. In a statement released by Monsurat Amasa-Oyelude, the Head of Corporate Communications at LIRS, the Director of Legal Services, Mr. Seyi Alade, made the announcement during a state-wide tax law enforcement exercise conducted by the Service in Lagos. The affected companies include NTS Nigeria Ltd., Med-In Hospital & Pharma Services Ltd., Danvic Petroleum Int’l Ltd., Business Intelligence Technology, Avaya Nigeria Ltd., Gladstone Tech Ltd., Courier Plus Services Ltd., Kurioucity Ltd., Medilag Ventures Ltd., Future Oilfields, and Seven Six & Ten Limited, among others. Simultaneously, 23 hotels, restaurants, and event facilities were closed for failure to deduct and remit consumption taxes. These businesses include Blitz Suites & Hotel, Offshoroomz Hotel, God’s Grace Hotel, De Orange Place Ltd., De Santos Hotel, Kentade Hotel Limited, Chamcee, Chelsea Suites, Falode Hotels, High Climax Hotel, Chez Moi Apartment, Excellence Hotel, Bereans Venture (Tantalizer Ebute Metta), La Avril Hotel & Suites, De Orange Place Ltd., Milaco Guest House, New World Inn, Model Motels Ltd, Rely Maritime Ltd, 4 Seasons Hotel, Dream Land Hotel, 343 North Restaurant and Lounge, and Jade Palace Chinese Restaurant. Alade reported that the combined tax liabilities of these entities exceeded N356.12 million, causing a significant loss of revenue to the State Government. Despite the Service’s efforts to promote voluntary compliance, some businesses opted for tax evasion, leading to renewed enforcement activities. Emphasizing the primary goal of securing compliance with the remittance of Consumption and Personal Income taxes, Alade warned that failing to file tax returns or engaging in tax evasion would be considered criminal offenses, potentially resulting in financial penalties and, in some cases, custodial sentences upon conviction. The agency is actively prosecuting high-net-worth individuals and companies that failed to file their returns, with bench warrants issued and arrests made in specific cases, including Platinum Apartments & Suites, The Moonlight Place Enterprises, and Jezreel Nursery and Primary School. Alade concluded by stating that the enforcement exercise would continue as part of the Service’s commitment to upholding tax compliance across the board. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.