The Lagos State Internal Revenue Service (LIRS) on Thursday shut down 10 hotels for failing to remit N24.75 million Hotel and Occupancy Consumption tax to the state.
The Head, Distrain Unit of the LIRS, Mrs Ajibike Oshodi-Sholola, made the disclosure shortly after enforcement operations in Lagos.
Oshodi-Sholola, who led the enforcement team, said that the hotels had owed the tax liabilities for over three years without efforts to make payment.
According to her, the liabilities of the hotels were from 2013 to 2014 tax audit year.
Oshodi-Sholola said, “Till today, the firms are yet to make the payments.’’
“Most companies are less concerned when it comes to tax issues, even if they are given the grace of 100 years to generate fund and make the payment, they will still not pay.
“Therefore, the best option is to obstruct their activities by closing down their premises so that they will realise that tax is a serious matter,’’ she said.
Oshodi-Sholola said that Nigeria did not take tax matters serious and most times indulged in tax evasion.
“Fortunately, in developed and developing countries, where taxation is recognised and obeyed, organisations and individuals do not wait to be reminded of their civil obligation of tax payment.
“In Nigeria, people still find it difficult to pay, even when government forces them,’’ she said.
Oshodi-Sholola said that some organisations did allow their tax liabilities to accumulate too high, such that the organisations might find it difficult to pay the debts.
She advised that such act was unhealthy for the growth of a business, adding that it had led to permanent closure of some organisations.
The Manager, Oguncity Hotel, Mr Kehinde Adeyinka, pleaded that LIRS should give the hotel a 24-hour’s grace to resolve the issue and pay the hotel’s liabilities.
The Head of the team objected to Adeyinka’s request, saying “our mission here is to come and shut down this hotel until the liabilities are settled and paid’’
