The Lagos State Internal Revenue Service (LIRS) is flexing its muscle against tax defaulters, with arrest warrants already issued and executed for key executives of several companies. This aggressive action sends a clear message: Pay your dues or face the consequences.
Leading the charge is Seyi Alade, LIRS Director of Legal Services, who confirmed the ongoing enforcement operations in an exclusive interview. He emphasized that no defaulter will be spared, whether individuals or organizations.
“Failure to file annual returns and respond to court summons for the past two years has resulted in bench warrants being issued,” Alade stated. “These warrants were recently executed against principal officers of companies like Sycamore Consulting Limited, Planoplex Limited, Red Offshore Shipbrokers Nigeria Limited, Gmunu Limited, and Lotus Fitness and Health Limited.”
This is not an isolated incident. Alade stressed that the crackdown is just the beginning, and any erring company or individual ignoring court summons for statutory annual tax returns will face similar consequences.
The legal basis for this action is clear. Section 417 & 822 of the Companies and Allied Matters Act 2020 mandates all companies to file annual returns by January 31st of each year.
Neglecting this obligation comes with hefty penalties. For employers, failing to comply with the annual tax return filing requirement incurs a N50,000 fine for individuals and a whopping N500,000 for corporate entities, according to Section 81 (3) of the Personal Income Tax (Amendment) Act 2011.
Additionally, Section 96 of the same Act outlines even harsher punishments for fraudulent practices or tax evasion. Individuals face a N50,000 fine or imprisonment for up to six months, while corporations can be fined N500,000.
