The Lagos state Inland Revenue Service (LIRS) has sealed the premises six companies for refusing to pay tax.
The News Agency of Nigeria (NAN) reports that the companies failed to remit N6.197 million personal income tax of their staff to the state government.
Mrs Ajibike Oshodi-Sholola who led the enforcement team to seal the companies explained that the affected companies owed between 12 months and four years. She said that the companies were employing and evading tactics by paying their current tax while ignoring the previous ones. She insisted that jumping tax and paying the current one would not make LIRS forget the outstanding one.
“It is very wrong to overlook tax payment of any certain year and a misconception to think that government will forfeit tax payment of any registered organisation in the state.
“Despite how long the tax of an organisation has lingered, the truth remains that the government will someday come for it,”
Oshodi-Sholola lamented that the poor taxation culture in the country was to blame for the evasion and urged companies to be up to date in their payment so as to avoid the embarrassment of their company being sealed off.
“In western countries where everything is taxable, tax is government’s key source of income. The government can still streamline Nigerian taxation system to make it more rewarding.
“I believe that effective taxation will boost government’s revenue and that is the only way the nation’s infrastructures can be maintained and sustained,”
Some of the affected companies however claimed not to have been notified before their premises were sealed.
Meanwhile, the governor of Lagos state, Akinwunmi Ambode, came under criticism from the Peoples Democratic Party over a loan his administration is seeking to obtain from the World Bank, amounting to N3.94 billion.