LIRS Cautions On Reopening Of Sealed Companies

The Lagos Internal Rev
enue Service (LIRS) has warned that it was a prosecutable offence for a company to unilaterally reopen its premises, after being sealed for tax default.
Mrs Folasade Coker-Afolayan, the agency’s Head of Distrain Unit, gave the warning in Lagos when four more companies were sealed for defaulting in the remittance of N17.4 million in the personal income taxes of workers
Coker-Afolayan told journalists in Lagos that breaking of the government seal was a criminal offence, which is punishable under the law.
“It is a criminal offence to break government’s seals. Only the state government can re-open such companies after they might have remitted the taxes to the government coffers,” the LIRS official said.
She urged defaulters to pay their debts, so as to have their companies reopened.
“It is better for companies to pay their taxes as at when due, to avoid sanction and consequently avert loss of productivity,’’ Coker-Afoloyan said.
According to her, the agency’s action is derived from an order of the State High Court and in accordance with the Personal Income Tax Amendment Act of 2011.
She explained that the new law provided for the tax authority to apply to court for warrants to close the premises of defaulting tax payers.
The official urged tax payers to cooperate with the LIRS and ensure prompt remittance of their taxes as and when due.
Coker-Afolayan also said that it was unlawful for anyone to assault tax officials, while performing their duties.
“Anyone who assaults tax officials will be dealt with according to law,’’ she warned.
The Tide source reports that the LIRS sealed 72 companies in the first quarter of the year, for failure to remit N552.6 million deducted as income taxes from their workers’ salaries, to the state government.