The defaulting companies are: Nicon Town Management Company with a tax liability of N36,053,652.89; Marketing Mix and Company Limited with a liability of N10,712,914.15; Hope Valley International Clinic with a liability of 2,389,885.28; BEC Consultants Nigeria Limited with a tax liability of N792,563.47; Goldmine Global Services Limited owing N505,812.73 and Brown Brommel Limited with a liability of N368,159.63. They all owed the State government money for periods ranging from one to five years (2007 to 2012).
Executive Chairman of LIRS, Olufolarin Ogunsanwo, yesterday, said the companies were sealed in pursuant to the provisions of Section 104 of the Personal Income Tax Act 2004 LFN (as amended in 2011) and would not be re-opened for business until all unremitted taxes are paid to the State government.
Ogunsanwo warned defaulting companies, especially employers of labour that governor, Akinwunmi Ambode, has zero tolerance for tax evasion, adding that LIRS is set to begin criminal prosecution of all tax defaulters in Lagos State to ensure that culprits are made to face the full wrath of the law.
In a related development, the need to engage the public in budget implementation and project delivery to ensure good governance was the thrust of discussion at the “2016 Budget Consultative Forum,” organised by the Lagos State Ministry of Economic Planning and Budget, held at Adeyemi Bero Auditorium, Alausa, Secretariat, last week.
The Permanent Secretary in the ministry, Mr. Kadiri Abayomi, while listing regular payment of taxes, patronage of public facilities and infrastructures and to ensure their protection as the role of citizen in engendering good governance, said the most important role is monitoring of ongoing government projects and reporting any observed lapses to the appropriate government agencies.
The Permanent Secretary mentioned that the year 2015 Budget funded some major ongoing infrastructural projects and new initiatives such as the Light Rail Project, expansion of Mile 12 to Ikorodu Road, which he noted was nearing completion, Adiyan Water Plant Phase II, amongst other major projects.
The governor believes that no matter how much is expended on physical infrastructure, without a renewed mindset of maintenance and collective ownership through enlightenment, such huge investment will be undermined,” he said. Abayomi therefore, appealed to all participants at the forum which included Non-governmental Organisations (NGOs), traditional rulers, civil society groups, youths, market leaders, artisans and members of the public to cooperate with government in all her programmes and policy initiatives to jointly rebuild Lagos.
The LIRS boss explained that under the Personal Income Tax Act, a taxable person is statutorily required to file a return of income for the preceding year at the expiration of 90days from the commencement of every year of assessment, whilst any employer of labour is required to file all emoluments paid to its employees for the preceding year, not later than 31st of January each year.
“In addition to that, employers will also be required to furnish the LIRS with the salary projection of all staff for the current year. The implication of which is that a taxable person or corporate organisations who have not filed their tax returns with LIRS by the stipulated date is in breach of the provisions of the law, which is a criminal offence that is punishable under the tax laws,” he said.
He listed such infractions to include, non deduction of taxes (PAYE, Withholding tax etc), non remittance of PAYE taxes deducted from employees, non deduction/remittance of taxes by casual workers, non-filing of tax returns at the stipulated statutory period, under declaration of income, concealment of relevant information (Income, fringe benefits etc) with a view to evading tax, failure to process Electronic Tax Clearance Certificate (e-TCC) cards for employees as a result of non remittance of tax deducted from their emoluments.
Ogunsanwo explained that the LIRS has spent the last 10 years on advocacy, publicity and enlightenment programmes on the statutory obligations of the citizenry to voluntarily comply by paying their taxes promptly as prescribed in the constitution of the country and the applicable tax legislations, but in spite of the efforts, many corporate organisations and individuals still engage in several infractions.
He, however, thanked those who have continued to express their unalloyed support to the Lagos State Government by performing their civic duties; stressing that these voluntarily compliant taxpayers are seen as partners in progress, who through the prompt payment of their taxes empower the State governor to actualize his developmental agenda of infrastructural renewal, sustainable, habitable and safe environment, multimodal transportation network, qualitative healthcare, education, agricultural development and an investment friendly environment amongst others.
He said the law is clear on issues bordering on tax evasion just as he reiterated that the LIRS will continue to take full advantage of the provisions of the law to prosecute recalcitrant corporate organisations and individuals without further notice.
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