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Tax evasion: Six firms face criminal prosecution in Lagos

By on October 24, 2015

The Lagos State Government on Thursday disclosed that it had commenced criminal proceedings against six companies operating within its defined territory without remitting taxes amount to N50 million between 2007 and 2012.

The state government named the defaulting firms to include Nicon Town Management Company owing N36,053,652.89, Marketing Mix and Company Limited 10,712,914.15, Hope Valley International Clinic N2,389,885.28, BEC Consultants Nigeria Limited N792,563.47, Goldmine Global Services Limited N505,812.73 and Brown Brommel Limited N368,159.63.

It made the disclosure in a statement signed by the Executive Chairman of Lagos Internal Revenue Service (LIRS), Mr. Olufolarin Ogunsanwo, noting that the defaulting firms had been sealed in pursuant to the provisions of Section 104 of the Personal Income Tax Act 2004 LFN (as amended in 2011).

Ogunsanwo said the defaulting companies “will not be re-opened for business until all unremitted taxes are paid to the state government,” declaring zero tolerance to tax default and evasion.

He said the law “is clear on issues bordering on tax evasion. The LIRS will continue to take full advantage of the provisions of the law to prosecute recalcitrant corporate organisations and individuals without further notice.”

He said 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. Under the Personal Income Tax Act (PITA), a taxable person is statutorily required to file a return of income for the preceding year at the expiration of 90 days from the commencement of every year of assessment.”

The chairman also pointed out that every employer of labour “is required to file all emoluments paid to its employees for the preceding year, not later than January 31 annually.

“Aside, employers will also be required to furnish the LIRS with the salary projection of all staff annually. 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 and Withholding tax etc), non-remittance of PAYE taxes, 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.

He said the LIRS “has spent the last ten 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 1999 constitution and all applicable tax legislations. In spite of the efforts, many corporate organisations and individuals still engage in several infractions.”

 

[ThisDay]