The Lagos State Internal Revenue Service (LIRS) has shut 13 hotels, including restaurants and event centers for failure to pay taxes to the state government in accordance with the Hotel Occupancy and Restaurant Consumption Laws of Lagos State 2009.
It was gathered that the Hotels and Restaurants owed the state sum of N426, 976,528.87.
Speaking on the state-wide tax enforcement exercise, at the weekend, the Director Legal Services of the LIRS, Mr. Seyi Alade warned that defaulting hotels, restaurants and event centers would henceforth face the full wrath of the law if they fail to deduct and remit their taxes as provided by the law.
While also promising to release in due course the names of the entities affected by the enforcement exercise, Alade said, “failure to deduct and remit taxes as at when due attracts very serious penalties that may lead to the sealing, seizure of the goods and chattels and criminal prosecution of principal officers of recalcitrant entities.”
The director said LIRS gives leeway to defaulters to pay their taxes by issuing multiple notices to inform and also remind them of their tax liabilities, adding that only recalcitrant taxpayers are shut down as in the present case.
He urged all business entities operating in the state to ensure prompt remittance of their taxes to avoid costly disruptions of their businesses as a result of non-compliance.