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Lagos closes three firms over tax evasion

Written By gideon oluseyi on Wednesday 26 March 2014 | 16:33

The Lagos State Internal Revenue
Service has closed three companies for
failing to remit N3.8m deducted as
personal income taxes of their workers
to the state government.
Mrs Folasade Coker Afolayan, Head of
the Distrain Unit of the LIRS, disclosed
this to the News Agency of Nigeria on
Wednesday in Lagos.
Coker-Afolayan, who led the
enforcement team, said that the
companies were closed on March 25
during a state-wide tax law
enforcement.
She said that the affected companies'
tax liabilities were for periods between
one and two years.
The team leader said the
enforcement would continue until
taxpayers imbibed the culture of
voluntary tax compliance, adding that
tax evasion was a criminal act.
She restated that tax payment was a
civic responsibility of every citizen,
adding that the proceeds were being
used by the government to provide
infrastructure.
"Tax payment is a civic responsibility for
everyone because that is the only way
government can provide the necessary
infrastructure for citizens and also
improve their standard of living," she
said.
Coker Afolayan urged companies to
remit their employees' tax deductions
promptly, to avoid their premises
being shut.
She said that the tax authority normally
sent a demand notice to defaulting
companies to notify them of their tax
liabilities.
The LIRS official said that a notice of
intent had been sent to the affected
companies, in accordance with the
Personal Income Tax Act Amendment,
2011.
"As to whether they received the
notices or not, that is purely an internal
matter of the companies," she said.
Coker Afolayan advised companies
operating in the state to remit their
taxes promptly, adding that they should
not wait until the government enforced
the tax laws.
She said that LIRS would continue
to sanction tax defaulters.
Coker Afolayan said that it was a
criminal offence to break government's
seals on sealed companies.
NAN reports that the LIRS had sealed 44
companies in the last two months over
non-remittance of N460.6m in the
personal income taxes of their workers.
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