The Lagos Internal Revenue Service (LIRS), on Thursday, shut four companies over non-remittance of N6.86 million workers’ personal income taxes.
Mrs Ajibike Oshodi-Sholola, the Head Distrain Unit of the LIRS, disclosed this in Lagos.
According to her, the firms were closed during a state-wide tax law enforcement exercise.
Oshodi-Sholola said that the four companies’ total tax liabilities were only for 2012 audited results.
She said that the affected companies included hotels, electronic shop, shipping company and fashion firm.
The head of the distrain unit said that some of the affected companies had started paying the 2015 taxes, but had not paid for 2012, 2010 and 2011.
She said that some firms would pay for the current year without paying for the previous years.
According to her, the companies were doing this by thinking government will forget, overlook or wave tax payment of past years.
“It is wrong to bypass tax payment of any year because government will not forget its money. Certainly, the government will come for the taxes one day.
“And pilling up the taxes may make the amount to accumulated so high that it may be difficult for the company to pay,” she said.
She said that some companies were out of business because their tax liabilities had accumulated such that they were unable to pay the debts.
Oshodi-Sholola urged firms operating in the state to ensure that they regularly remit their workers’ taxes to the service to avoid the embarrassment and disruption of their operation.
“Ensure your company is up-to-date with its tax payments and always make available all necessary documents in respect to the companies’ tax issues in case LIRS visits.
“Tax-payment is a civic responsibility of everyone because it is a major source of government’s revenue.
“It also the only way government can provide the basic amenities for the citizens to improve their living standards,” she said.
Some of the affected companies, however, complained that LIRS was not giving them fair hearing.
They said that they did not receive letters from the LIRS in respect of its plan to seal their companies.
In a related development, LIRS alleged that workers of Quest Shipping Company attacked its enforcement team while attempting to lock its premises over tax evasion of N4.07 million.
Mrs Oshodi-Sholola, who led the enforcement team, made the allegation in Lagos.
Oshodi-Sholola said that the company’s workers refused to allow her team to enter the company’s premises.
According to her, the company’s workers kept the enforcement team at the reception room for more than 35 minutes without attending to the officials.
”After staying at the reception for close to 35 minutes, the team attempted to enter the office to make some inquiries.
”Immediately we opened the entrance door, more than 20 workers of the company launched attack on us, saying no visitor had the right to enter the office without their consent.
”The company locked the team’s cameraman outside with the opinion that he has no right to video their activities without permission,” she said.
Oshodi-Sholola said that the intervention of policemen from the governor’s office who accompanied the enforcement team helped to put the situation under control.
”However, the enforcement team was able to seal the company through the efforts and assistance of the policemen,’’ Oshodi-Sholola said.
She advised the management of the company against removing government’s seal, stressing that “it is a criminal offence to do so’’.
Mr Johnson Olugu, the Secretary of the company, however, said that “LIRS did not notify us before coming to close down our premises.’’
“if we have been notified, the company’s accountant would have been around to present all necessary documents.
”But closing the company is not the best option because if it is closed down, there is no way it can make money to pay the said debts,” he said.
