Six firms have been sealed for failure to remit N42.68 million Personal Income Tax of their staff to the Lagos state government.

This information is according to Seyi Alade, the Director, Legal Services of the Lagos State Internal Revenue Service (LIRS), Nairametrics gathered.

The Legal Director of the state revenue’s service said it was a decision that was long overdue. He disclosed that the affected companies defaulted in the area of tax liabilities since 2014 to 2016 and refused to pay even after an audit was conducted on them and a period of grace was extended to them.

Lagos State Internal Revenue
LIRS Executive Chairman,

He noted that the LIRS had stopped shutting down companies which failed to remit their taxes in order to give room for voluntary compliance. However, a few still flouted the rules and chose not to pay.

Alade went on to reiterate the commitment of the LIRS in ensuring that taxes were remitted to the state and promised to move in the direction of unyielding companies which failed to remit tax.

[READ MORE: Nigeria to lure foreign investors with attractive tax incentives]

Business day

He explained that remittances of Consumption and Personal Income Taxes must be adhered to, noting its importance as key drivers for the development of state and the benefit for the people.

The truth is that these companies are deducting Personal Income Taxes from staff salaries at the end of every month, while customers pay the consumption taxes at the purchase of goods and services.  

“But it is unfortunate that most firms will rather refuse to remit the payments to the government by illegally converting such monies to their own use,” he said.

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Alade promised that the LIRS would deal strongly with firms that had not yet regularized their tax status. He also promised that many firms which failed to remit their taxes would be shut. Also, he advised companies to file tax returns and tax evasion appropriately. Failure to do so, according to him, would attract sanction,s as he noted that the revenue service was prosecuting top individuals as an example to many others guilty of the act.

Standard chartered

Some of the sealed companies include BrainBox-Media Ltd., Orchard Creations Enterprises Ltd., and Addeva Electrical Nigeria Ltd.

What you should know: Personal Income Tax is imposed on individuals who are either in employment or are running their own small businesses, under a business name or partnership.

 

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