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Business News of Friday, 14 February 2020

Source: MyNigeria

JUST IN: LIRS shuts 16 companies over N126.19m consumption tax evasion

Tax Tax

Failure of 16 firms to remit consumption tax has forced the Lagos State Internal Revenue Service to seal up their offices.

According to the organization’s Director of Legal Services, Seyi Alade, the companies tax liabilities from 2014 to 2016 amounted to about N126.19m consumption tax.

“The affected companies failed to pay the established liabilities despite the long period of time the agency gave them to regularise their tax status,’’ he said.

He noted that four of the companies that admitted their tax liabilities made their payments and an additional payment of N100,000 each as distress cost to LIRS.

Alade, however, urged all companies and taxpayers in the state to always adhere to their tax obligations to avert disruption of their operations and additional distress cost.

Giving an insight into how the system works the director revealed that the state revenue service usually sends notices to the affected companies before embarking on an enforcement exercise.

“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,” he explained.

However, Damola Falola, the Business Development Manager of Tyttlo Event Centre, one of the affected companies said the LIRS took them by surprise and dismissed ever receiving a Demand Notice letter from LIRS.

Falola promised to reconcile the company accounts soon and pay up.