The Lagos State Internal
Revenue Service (LIRS) has closed five companies for failing to remit N32.5 million personal income tax of their workers to the state government.
Mrs Folasade Coker-Afolayan, Head of the Distrain Unit of the LIRS, Mrs Folasade Coker-Afolayan, disclosed this to newsmen in Lagos.
Coker-Afolayan, who led the enforcement team of FIRS, said that the companies were closed on March 19 during state-wide tax law enforcement exercise.
She said that the affected companies’ tax liabilities were for period ranging between one and two years.
The team leader said the enforcement would continue until tax payers imbibed the culture of voluntary tax compliance, adding that tax evasion was a criminal act.
She reiterated that tax payment was a civic responsibility of every citizen, adding that the proceeds were being used by the government to provide infrastructure.
“Tax payment is a civic responsibility of everyone because that is the only way government can provide the necessary infrastructure for.
“It is also the means government uses to improve their standard of living,” the team leader said.
Coker-Afolayan urged taxpayers to remit their taxes promptly to avoid their premises being shut.
She said that the tax authority had earlier sent demand notice to defaulting companies to notify them of their tax liabilities.
The LIRS official said that a notice of intent had also been sent to the affected companies in accordance with the Personal Income Tax Act amendment 2011.
Coker-Afolayan advised companies operating in the state to remit their taxes promptly, adding that they should not wait till the government enforced the tax laws.
She said that LIRS would continue to sanction tax defaulters and advised companies to remit taxes promptly to avoid embarrassment.
Coker-Afolayan said that it was a criminal offence to break government’s seals on sealed companies.
Officials of some of the affected companies, who did not want their names in print, accused the state government of denying them fair hearing.
They also frowned at the manner the government was enforcing the tax laws.
Some of them denied owning the state and the companies were wrongly sealed.
It would be recalled that the LIRS had sealed 44 companies in the last two months over non-remittance of N460.6 million personal income taxes of their workers.