Seventy-two companies have been sealed off by the Lagos State Internal Revenue Service (LIRS) for evading the sum of N552.6m in tax in the first quarter of the year.
The report was revealed by Mrs. Folasade Coker-Afolayan, head, Distrain Unit of LIRS, who explained the outstanding income tax profile of Lagos State to journalists during an interview on Monday.
According to Coker-Afolayan, 23 of the tax-evading firms were discovered and sealed in January because they did not remit N326.6m due in tax to the state government, while 21 others were sealed in February for non-remittance of N134m tax liabilities.
The remaining 28 companies were closed in March for evading more than N92m.
The companies involved are from a wide array of industry, such as manufacturing, media, office, eatery, printing press, energy, tourism, hotels and hospitality sub-sectors.
Coker-Afolayan encouraged companies to avoid embarrassment and other inconvenience occasioned by sealing their offices, saying that paying their tax regularly is easier than the consequences of evading it.
“Tax is a civic responsibility of everyone”, she said. “It enables government to function effectively to provide infrastructure and improve standard of living of the people”.
She assured that the LIRS would continue to relentlessly hunt down all tax evaders, warning companies that break the seals would only put them in double trouble if they do not settle duly with the tax office.
In year 2013, LIRS closed 250 companies for failing to remit workers’ personal income taxes to the tune of N2.6bn.
