June 7, 2009

Lagos Seals Five Firms over Tax Evasion

The Lagos State Internal Revenue Service (LIRS) has sealed-off premises of five companies for allegedly evading tax to the tune of over N100 million. The News Agency of Nigeria (NAN) reports that the companies were sealed for not remitting their tax liabilities from 2000 to 2007 to the coffers of the state government.

One of the LIRS officials, who requested anonymity, told NAN that the government had sensitised firms in the state on the need to remit their taxes promptly but some would not comply. “In this modern day of tax awareness in the country some companies still say that they are not aware of tax payment to the government.

“It is worrisome even with the introduction of voluntary tax education and free tax assessment education to companies and individuals to enable them know the importance of tax and how to comply,” she said.

She said that the government needed funds to execute its projects and meet its commitment to the citizens.
The official said that the clamp down on tax defaulters was in pursuant to Section 104 of the Personal Income Tax Act Cap 8 laws of the federation 2004.

NAN reports that no fewer than 15 companies had been sealed-off in the last two weeks, while 25 companies had been notified of the team’s visit next week.