Two Companies was shut by LASG for tax evasion

THE Lagos State Internal Revenue Service (LIRS) has shut two companies for alleged failure to remit a N4.01 million Personal Income Tax of their employees to the state government. Mrs Ajibike Oshodi-Sholola, Head, Distrain Unit of the LIRS, said this after a state-wide tax law enforcement in Lagos on Tuesday. 

Gov. Ambode Oshodi-Sholola, who led the enforcement team, said that the firms were audited about four to three years ago, adding that the companies’ liabilities were for 2009, 2011 and 2012 tax audit year. She said the companies accepted the liabilities that were given to them but refused to make the payment. 

According to her, LIRS has sent two notices to the affected companies, reminding them of their liabilities and LIRS’ intention to close down their companies. “Both demand notice letter and letter of intention were sent to the companies, which they ignored. That is why LIRS enforcement team sealed the companies for non-compliance and failure to object to the liabilities until the debt is paid,” she said. 

She added that the affected companies were publishing and printing firms. She said that if a company was satisfied with its tax liabilities, it could object to it and have a meeting with LIRS and the amount might be amended. 

However, Oshodi-Sholola advised corporate organisations operating in the state to always notify the LIRS of any change in their companies’ name and address for proper records. She said that notifying the LIRS would enable it to have valid and up-to-date information about the organisation. 

Accumulation of tax liabilities 

According to her, some companies in the state have relocated to an unknown destination, change address or move out of business without the notice of LIRS.  ‘’Such act do not aid the operations of LIRS because it will assume the company still use its old address/name and keep sending mails to wrong address. If a company liquidates, change name or address, its management is supposed to write to the necessary authorities informing them of the new developments. Such information helps an authority like LIRS to stop accumulating tax liabilities for non-functional companies,” she said