Tax evasion: Lagos shut 6 companies

Six companies (names withheld) owing Lagos State government tax liabilities put at N50 million have been sealed by the Lagos Internal Revenue Service (LIRS). The companies were shut yesterday.

Olufolarin Ogunsanwo, executive chairman, LIRS, said the companies were sealed in pursuant to the provisions of Section 104 of the Personal Income Tax Act 2004 LFN (as amended in 2011) and would not be allowed to reopen for business until the tax liabilities were fully settled.

He also warned defaulting companies, especially employers of labour that the state governor, Akinwunmi Ambode had zero tolerance for tax evasion, adding that LIRS was set to begin criminal prosecution of all tax defaulters in the state to ensure that culprits were made to face the full wrath of the law.

He explained that 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 any employer of labour was required to file all emoluments paid to its employees for the preceding year, not later than January 31, 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 organisations who have not filed their 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.

JOSHUA BASSEY