Connect with us
nairametrics

Business News

LIRS shuts 16 companies over alleged tax evasion, threatens to close more 

LIRS is cracking down on companies in Lagos, leading to the shutdown of 16 companies for allegedly not remitting N126.19 million consumption tax.

Published

on

Director, Legal Services of the LIRS, Seyi Alade

The Lagos State Internal Revenue Service (LIRS) has shut about 16 companies  in the state over their failure to remit N126.19 million consumption tax to the commercial hub of the nation.  

This was disclosed by the agency’s Director of legal services, Seyi Alade. According to him, the companies have been barred from operating their businesses until their tax liabilities have been paid.

It was learned that the tax liabilities were from 2014 to 2016. Babatunde Fowler was the LIRS boss in 2014 before his appointment to lead the FIRS in 2015; his tenure ended in 2019.

 

Nairametrics had previously reported that under Fowler, the FIRS failed to collect taxes worth about N41 billion in Lagos as it has not been able to meet up with its target over the past four consecutive years.

GTBank 728 x 90

The taxes that were not collected were from companies, government agencies, and local government councils. This was cited as one of the factors that cost Fowler a second term. 

Fowler was responsible for the growth of the LIRS when he served as the tax agency’s boss. He led the tax reform within the state, resulting in a sizeable amount of income for the Lagos State Government.

His tenure at LIRS is believed to have earned him the Executive Chairman position at FIRS in 2015. He was, however, in 2019, replaced by Muhammad Nami, who recently revealed why FIRS failed to attain its tax revenue projections under Fowler.

Coronation ads

(READ MORE: LIRS under investigation after dumping taxpayers’ data online )

Penalty for delayed payment: In a statement issued by Alade, four of the companies were made to pay additional N100,000 as distress cost to LIRS on their initial debt to the tax agency. He said to avoid such penalties and disruption of operation, companies need to update their tax payments. 

“The affected companies failed to pay the established liabilities despite the long period of time the agency gave them to regularise their tax status. Before LIRS embark on such exercise, it must have sent at least two letters of notices to the management of the affected firms reminding them of their tax liabilities,” he explained. 

These companies ignored warnings: Alade further stated that “The demand notice expiration is 30 days, while the letter of intention expires seven days after issuance.

“So, before now both the demand notice letter and the letter of intention have been sent to the management of the companies which they failed to act on.”

Jaiz bank ads

MeanwhileAlade disclosed that the LIRS now has an upgraded system to track companies and individuals that evade tax payments in Lagos. He urged taxpayers to take advantage of the electronic tax platform in order to ease their payment process. 

Stanbic IBTC

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Corporate Press Releases

elev8 launches new Nigeria Academy, to host event series on Nigeria’s digital future

The event will bring together experts in business, digital technology and economic development to amplify Nigeria’s digital dialogue.

Published

on

Global technology training company elev8 is delighted to announce the launch of its new academy in Lagos with a series of online events focused on digital transformation in Nigeria.

The Knowledge-based Economy – A Pathway to Nigeria’s Digitally Enabled Future is an opportunity for business leaders to participate in Nigeria’s digital dialogue with industry experts, technology trailblazers and government leaders.

C-suite executives and digital leaders across the country are invited to join elev8 for a special series of events exploring the impact of new technologies and digitalization, as well as the potential risks to economic growth, such as Covid-19.

Digital enablement is increasingly becoming a hot topic for global businesses. In the next few years, the digital economy is projected to be responsible for a quarter of global GDP.

Across the world, businesses are accelerating digital adoption to establish a competitive edge, drive growth and ensure efficiency. For Nigeria to compete on the world stage, investment in new technologies and skills is essential in supporting a transition to a knowledge-based economy.

GTBank 728 x 90

Digital Event: The Knowledge-based Economy – A Pathway to Nigeria’s Digitally Enabled Future

30 November – 3 December

The event will commence with the release of a cutting-edge research report on November 30. Produced in conjunction with BusinessDay Research and Intelligence Unit.

Coronation ads

The report examines the impact of digital transformation on Nigeria’s economic growth over the next three years.

On December 1, participants will gain valuable insight on the digital strategies and tactics deployed by leading market players in an exclusive masterclass, Digitize or Die, hosted by award-winning technology and digital innovator, Sabine VanderLinden.

The event will close on Thursday, December 3 with a live digital dialogue, featuring an expert panel of digital specialists, government figures, and business leaders, looking at the ways that digitization will impact Nigeria’s economic development.

To find out more, or register for the event, please visit: www.elev8me.com/nigeria20

Jaiz bank ads
Continue Reading

Companies

ValuAlliance distributes value fund of N10 per unit for H1, 2020

ValuAlliance Value Fund has declared the distribution to unit holders, the sum of N10.00/unit for the financial year ended June 30, 2020. 

Published

on

ValuAlliance Value Fund (“Value Fund” or the “Fund”), formerly called the SIM Capital Alliance Value Fund, has declared the distribution to unit holders, the sum of N10.00/unit for the financial year ended June 30, 2020. 

This is according to a notification by the firm, sent to the Nigerian Stock Exchange market and seen by Nairametrics.

The latest distribution indicates a decline of N1/unit when compared to its distribution in the corresponding period last year. 

(READ MORE: SEC reinstates DEAP Capital’s Board)

The key highlights of the recent notification include:

GTBank 728 x 90
  • Annual General Meeting Date: 21st December 2020 
  • AGM Venue: 33A Alfred Rewane (Kingsway) Road, Ikoyi, Lagos, Nigeria 
  • Proposed Distribution: ₦10/unit  
  • Qualification Date: 9th December 2020  
  • Closure of Register Date: 10th December 2020  
  • Payment Date: 23rd December 2020 

What you should know 

  •  The Value Fund is a closed-end Fund registered and regulated by the Securities and Exchange Commission (SEC), whose units are listed on the main board of the NSE. 
  • The Value Fund for the year ended June 30, 2020 achieved growth of 2.83% Year-on-Year, with a cumulative return of 125.32% since inception, which translates to a 9-year Internal Rate of Return (IRR) of 12.06%.

Continue Reading

Economy & Politics

Nigeria generates N416.01 billion from Company Income Tax in Q3 2020

Total company income tax generated increased by 3.48% in Q3 2020, compared to N402.03 billion recorded in Q2 2020.

Published

on

Avoid paying taxes

Nigeria generated the sum of N416.01 billion from Company Income Tax (CIT) in the third quarter of 2020. This was revealed in the Company Income Tax by Sectors report, recently released by the National Bureau of Statistics (NBS).

According to the report, the total CIT generated increased by 3.48% in Q3 2020, compared to N402.03 billion recorded in the previous quarter (Q2 2020). It reduced by 20.13% compared to N520.89 billion recorded in the corresponding quarter (Q3) of 2019.

Highlights

  • Company income tax generated year-to-date sums up to N1.11 trillion as against N1.26 trillion in the comparable period of 2019.
  • Professional Services including Telecoms generated the highest amount of CIT with N55.52 billion generated, closely followed by Other Manufacturing with N42.03 billion.
  • Banks & Financial Institutions generated a sum of N24.05 billion.
  • Mining generated the least, closely followed by Textile and Garment Industry and Local Government Councils with N120.93 million, N167.51 million, and N321.72 million generated respectively.

Out of the total amount generated in Q3 2020, N244.70 billion was generated as CIT locally, while N70.34 billion was generated as foreign CIT payment. The balance of N100.97 billion was generated as income taxes from other payments.

Automobiles and Assemblies grows CIT by 994%

GTBank 728 x 90

In terms of sectors with the highest increase in company income tax remittances, the Automobiles and Assemblies sector grew its CIT by 994%, from N81.6 million in Q2 2020 to N892.7 million. It was closely followed by the Gas sector, which grew its CIT by 626% to stand at N4.76 billion from N655.5 million.

On the flip side, transport and haulage services recorded the highest decline in company income tax, as it reduced by 76% to stand at N7.35 billion from N31.1 billion. This is closely followed by Banks and financial institutions, which declined by 51% to stand at N24.1 billion.

Coronation ads

Bottom line

The rise in company income tax is an indication of the Nigerian government’s move to improve the generation of revenue from the fiscal side as against oil exportation. However, the halt in economic activities due to the COVID-19 pandemic contributed to the year-on-year decline in company income tax.

Continue Reading