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Tag: LIRS

  • LIRS urges businesses on consumption tax compliance

    LIRS urges businesses on consumption tax compliance

    Lagos State Internal Revenue Service (LIRS) has urged owners of restaurants, hotels, and event centres operating in the state to contribute to the state’s development by prioritizing the monthly collection and remittance of a 5 per cent consumption tax on all consumables and personal services.

    The State on June 22, 2009, enacted the Hotel Occupancy and Restaurant Consumption Law of Lagos State otherwise called Hotel Consumption Law, which imposes consumption tax at 5 per cent on the value of goods and services consumed in hotels, restaurants and event centers within the state.

    The tax base is the total cost of facilities, consumables or personal services supplied to a consumer in, by or on behalf of the hotel, restaurant or events centre.

    Speaking on the new Tax Talk programme, Director, New Growth, LIRS, Jimi Aina , said while the consumption tax is a major source of revenue for the State Government, owners of restaurants, hotels, event centres, etc are obligated to register with the LIRS as collecting agents.

    Aina maintained that contrary to the misconception a lot of people have about consumption tax, the state has not imposed additional taxes on restaurants, hotels and event centres, rather, consumers who purchase taxable goods or services in the state are responsible for paying the consumption tax. The tax is already included in the price of the goods or services and is paid to the collecting agent who collects it on behalf of the Lagos State Government.

    He said: “Many people misunderstand the concept of consumption tax. It is often thought that this tax is an additional burden on hotels and restaurants, but this is not the case. In reality, it is the customers who are taxed when they dine out, attend events, or have drinks at a bar. The tax rate is five per cent. By paying the consumption tax, consumers contribute to the development and maintenance of these amenities and services.”

    “According to Section 1 of the Lagos State Consumption Tax Law, consumption tax is defined as a tax on the supply of goods and services in Lagos State, which is charged and payable by the consumer.”

    Read Also: LIRS holds summit

    “Consumers who purchase taxable goods or services in Lagos State are responsible for paying consumption tax. The tax is included in the price of the goods or services and is paid to the collecting agent who collects it on behalf of the Lagos State Government,” he said.

    Furthermore, the New Growth Director said while collecting agents (restaurants, hotels and event centres) have the responsibility of collecting these taxes from consumers and remitting to the LIRS, it’s also important to factor in the deadline for remittances.

     According to him the Lagos state consumption tax law, makes it compulsory that the remittances must be made not later than the 20th day of the month following the month of collection.

     For example, consumption tax collected in September must be remitted to the LIRS on or before the 20th of October.

    Aina noted that there are legal implications to non-remittances by collecting agents who failed to remit consumption tax collected from consumers to the LIRS within the prescribed time.

    “Where a Collecting Agent fails to make a return or remittances as and when due, LIRS may make an estimate of the total amount due and such estimate shall become due not later than 21 days of service of such a notice.

    “Failure to remit the tax collected within the stipulated time will attract a 10 percent penalty of an amount not remitted plus interest at 5 percent above the prevailing Monetary Policy Rate of CBN of Nigeria. Such collecting agent may also face sanctions including closure of business and prosecution,” he submitted.

    He stressed that every collecting agent is required to keep, maintain and preserve such records, books and accounts in respect of all transactions chargeable under the Law as hotels, restaurants and other businesses affected by this Law are required to register with LIRS and keep records of Evidence of registration as a Collecting Agent.

  • Lagos shuts hotels over N354.75m tax evasion

    Lagos shuts hotels over N354.75m tax evasion

    The Lagos State Internal Revenue Service ( LIRS ) on Thursday shut 11 hotels, restaurants and event centres over alleged failures to remit their taxes under the Hotel Occupancy and Restaurant Consumption Laws of Lagos State 2009.

    Mr Seyi Alade, Director, Legal Services of the LIRS, said this after a state-wide tax law enforcement exercise in Lagos, adding that the firms owed the state government N354.75 million in unpaid taxes.

    Alade said that the government had started full enforcement of all aspects of tax laws on defaulting taxpayers.

    He further warned that failure to file Annual Tax Returns, false declarations in returns filed and evasion of taxes were criminal offences punishable by severe fines and jail terms upon conviction by a court.

    “Any failure to deduct and remit taxes as and when due in Lagos State will now attract very serious monetary penalties.

    “These penalties include sealing of the company, seizure of the goods and chattels and criminal prosecution of principal officers of recalcitrant entities.

    “We are presently prosecuting 52 high net-worth personalities and 20 entertainment celebrities before the State High Court for offences ranging from failure to file Annual Tax Returns, false declaration in Returns and tax evasion,”he said.

    He added that over 200 corporate bodies were currently being prosecuted before the High Courts for failure to file returns and remit their taxes to the government.

    Alade advised that taxpayers should take advantage of the window of opportunity created by the Voluntary Assets and Income Declaration Scheme (VAIDS), to regularise their tax status relating to previous tax periods.

    Read also: Ambode orders census of worship centres in Lagos

    “In exchange for full and honest disclosure of assets and income, such taxpayer will benefit from the forgiveness of overdue interests and penalties till the 31st December 2017.

    “Declarations made from 1st January 2018 will attract interest but no penalties up to the end of the scheme on March 31, 2018,” he said.

    He appealed to all taxable individuals and business entities operating in the state to ensure prompt remittance of their taxes to avoid the additional payments of interests.

    Alade added that business entities and taxable individuals who failed to remit their taxes promptly would also suffer penalties and disruptions to their businesses as a result of tax evasion.

    He listed Regia Luxuria hotel, Golden Hope hotel, Westown hotel, Liberty Hall, Seven Eagles Spur and El Shaddai Margvee hotel among others as some of the affected companies.

    NAN

  • LIRS gives tax defaulters ultimatum

    The Lagos State Internal Revenue Service (LIRS) enjoins all taxpayers in Lagos State to be on the right side of the law and take full advantage of the 16-day grace period from December 1st to 16th, 2016 to remit all overdue taxes/levies to avoid prosecution.

    The LIRS has in the last few months embarked on massive advocacy and enlightenment programmes, taking Lagos residents and taxpayers through a process of education on the laws bordering on tax administration and the need and benefits of paying taxes as and when due.

    In spite of the significant decline in the allocation from the federation accounts, the Lagos State government is still embarking on massive infrastructural development and renewal; these cannot be achieved if tax payers deliberately refuse to discharge their civic responsibility to the State.

    Taxpayers are hereby advised to clear all outstanding payments ON OR BEFORE THE 16TH OF DECEMBER 2016, failing which the Lagos State Government will commence criminal prosecution of offenders, with full enforcement through distrain activities in line with relevant provisions of the Personal Income Tax Act 2004 (As amended).

    According to the Executive Chairman of LIRS, Ayodele Subair “LIRS has put all the necessary machineries in place to ensure the enforcement of the tax laws with effect from December 17.

  • Zubair confirmed as LIRS boss

    Zubair confirmed as LIRS boss

    Lagos State House of Assembly yesterday confirmed Ayodele Zubair as Internal Revenue Service (LIRS) chairman.

    Governor Akinwunmi Ambode had sent Zubair’s name to the House for approval.

    Born in 1960, Zubair is an accountant, whose grandfather and father were professional accountants.

    He is a graduate of Accounting from Manchester Polytechnic and worked for five years at Pricewater before he became one of the directors at his father’s firm, Hamzat Zubair Folami & Co.

    He is a Fellow of some professional bodies, among which are Institute of Chartered Accountants (ICAN) and Institute of Taxation.

    The LIRS boss told lawmakers before his confirmation that he worked as A pioneer director at the state Lottery Board.

    He promised to bring transformation to raise tax in the state, saying through computerisation and collaboration, better results will be achieved.

    He added that his administration will beam its searchlight on the informal sector by incorporating them into the tax net.

    According to him,  the “informal sector is significant for effective tax collection. We shall, for a start, introduce presumptive tax at the informal sector and through this, we shall get additional information to raise more revenue.

    “Through technology, computerisation and collaboration, there shall be co-ordination to have sufficient data about every prospective tax payer,” Ayodele said.

  • Ambode sacks Ogunsanwo as LIRS chairman

    Ambode sacks Ogunsanwo as LIRS chairman

    … Nominates Subair as replacement

    Lagos Internal Revenue Service (LIRS) Chairman, Mr. Folarin Ogunsanwo, has been relieved of his appointment with Governor Akinwunmi Ambode immediately nominating Mr. Ayodele Hamzat Subair as his replacement.

    Ogunsanwo, our reporter gathered was sacked last week over what a credible source said was financial irregularities under his watch, leaving Ambode with no option but to terminate his appointment.

    Consequently, the governor on Monday morning sent a letter to the House of Assembly requesting for the confirmation of Subair as the new Chairman of the LIRS.

    In the letter read on the floor of the House of Assembly, Ambode said,” following the retirement of the erstwhile Chairman, Mr. Folarin Ogunsanwo who held the position since September 2015, it became expedient to quickly seek a suitable replacement in view of the vital position of the LIRS towards its revenue generation drive and in attainment of his administration’s set target to deliver good governance to the citizenry.”

    Subair, who was born on May 21, 1960, holds a Bachelor of Arts Degree in Economics from the Metropolitan University of Manchester, United Kingdom and a Masters Degree in Business administration from the University of Lagos.

    He is a fellow of the Institute of Chartered Accountants of Nigeria (ICAN), member of both the Chartered Institute of Taxation of Nigeria (CITN) and the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN).

    Subair has over 34 years working experience which started with the Price WaterHouse Chartered Accountants before venturing into private practice in 1987 with the Hamzat Subair and Co. Chartered Accountants where he is the Managing Partner.

    He was the pioneer Director of Lagos State Lotteries Board and has worked with various international agencies such as the International Finance Corporation (IFC).

    Ambode said Subair’s presentation to the House of Assembly for confirmation was in conformity with Section 2 of the Lagos State Revenue Administration Law (2006).

    In a related development, Ambode has also approved the appointment of Engr. Abiodun Dabiri as the new Managing Director of the Lagos Metropolitan Area Transport Authority (LAMATA).

    Dabiri, born on January 2, 1964, holds a Bachelor of Science and Masters Degrees in Civil Engineering from the University of Lagos.

    He is a registered engineer with the Council for the Regulation of Engineering in Nigeria (COREN), corporate member of the Nigerian Society of Engineers and member of the Chartered Institute of Purchasing and Supply Management of Nigeria (CIPSMN).

     

  • LIRS shuts eight hospitality firms for tax evasion

    LIRS shuts eight hospitality firms for tax evasion

    Eight hospitality companies have been shut by the Lagos State Internal Revenue Service (LIRS) for failing to remit consumption taxes.

    Head of Distrain Unit of the LIRS, Mrs Ajibike Oshodi Sholola made this known in an interview with the News Agency of Nigeria (NAN) yesterday during a state-wide tax law enforcement in Lagos.

    According to her, there were many other companies that would be shut.

    She said the focus was to ensure that hospitality firms became tax compliant and promptly remitted consumption taxes which had been paid by customers.

    “The LIRS has resolved to embark on total clamp down of hotels, event centres and other hospitality outfits over tax evasion.

    “Most organisations are only concerned about how to make profits and grow their business to the detriment of the government who provides the basic facilities that aids their operation.

    “As a result, the enforcement team has determined not to leave any liable firm open unless its tax liabilities are paid because it is through this medium that government generates its revenue,’’ she said.

    Mrs Oshodi-Sholola said the tax liabilities of the shut firms amounted to N27.51 million, adding that the liabilities were for 2013 to 2014 tax audit year.

    She added that the essence of shutting down these companies was to deter those that ignored the notification letters from LIRS about their tax status.

    According to her, it is a waste of resources for LIRS to be looking for the tax evaders, because such resources could be deployed to other projects for citizens’ welfare.

  • LIRS hires tax experts from ICAN, CITN

    LIRS hires tax experts from ICAN, CITN

    The Lagos State Internal Revenue Service ((LIRS) has engaged 1,200 members of the Chartered Institute of Taxation of Nigeria (CITN) and the Institute of Chartered Accountants of Nigeria (ICAN) as Tax Audit Monitoring Agents (TAMAs).

    The TAMAs are authorised to act as agents of LIRS for tax audit and assurance purposes. The LIRS carried out a review of the appointment and operational procedure of the TAMAs in order to enhance efficiency in its audit exercise.

    In a statement, the LIRS said their duty would be to collect requisite information during tax audit field exercises, collate, prepare and submit tax audit reports based on the facts gathered for use by the LIRS.

    Executive Chairman of LIRS, Olufolarin Ogunsanwo, implored the TAMAs to demonstrate the highest level of professionalism.

    “We believe you will demonstrate a high sense of responsibility and integrity in this noble assignment in line with international best practices as we hope to improve the internally generated revenue of the state and ultimately engender a sustained culture of voluntary compliance amongst tax payers in Lagos. I have no doubt in my mind that your professionalism will be of tremendous value during this year’s exercise and beyond,” he said.

    The revised tax audit manual was also presented formally. It highlights the systematic steps of auditing, ethical standards and codes in line with international best practices.

    “The TAMAs at the Training undoubtedly emerged to be the best in the stock of applications that we received.

    The selection process was quite painstaking and took into consideration a number of preconditions, professionalism and track records in the most vital areas,” LIRS’ Board Secretary, Jimi Aina said.

    Advising the TAMAs at the workshop, Director, Tax Audit, Bolaji Akintola, said.

    “The Image and reputation of LIRS is key in tax audit, therefore we charge you to stand for what LIRS stands for, by avoiding any form of compromise, illegality, unprofessional conducts and shunning all under the table transactions.

  • LIRS achieves N24.5b monthly IGR

    Lagos Internal Revenue Service (LIRS) generated N24.5 billion as the state’s Internally Generated Revenue (IGR) for January this year, the state Finance Commissioner, Mustapha Akinkunmi has said.

    Speaking yesterday during a media briefing ahead of the state’s tax reforms launch, the commissioner said the January figure constitute 98 per cent performance target for the month and a 12 per cent rise when compared with last year’s figure for same period.

    He explained that despite the tough national economic conditions faced in last year by the country, the state was able to raise its revenues mainly through taxes, with the LIRS contributing 79 percent to IGR in 2015.

    He said: “This equated to 56 percent of the state’s total revenue, including Federal Transfers. The total revenue achieved in 2015 was just short of N400 billion and is expected to continue growing, driven by strong tax collection.  This administration has been able to make significant investment in security apparatus across the state and has provided street-lighting across the state. We are reducing costs through investment in technology which is a powerful tool for cost reduction through efficient administration,” he said.

    LIRS Executive Chairman, Olufolarin Ogunsanwo said the agency  has  initiated reforms  that would improve  the ease of doing business in the state which has also boosted voluntary tax compliance. He said government was already working to bring more members of the informal sector into the tax net, adding that the Tax Returns Form had been reduced to two pages as against the six pages document hitherto in operation.

    He also said the agency, in an effort to bring efficient service delivery closer to the people, has commissioned two new tax offices in Tejuosho and Sangotedo, even as efforts are being made to open two additional tax stations within Amuwo Odofin/Festac and Alimosho axis.

    He commended taxpayers and urged Lagosians to continue to pay their taxes as and at when due, saying in doing so, they empower the state government to embark on infrastructural renewal and provision of dividends of democracy to the citizens.

    He said so far, the provision of the N4.8 billion security equipment, provision of new ambulances, the N25 billion Employment Trust Fund, the Light Up Lagos project, massive road construction among others, had been provided through revenue generated from tax.

    He said given the declining revenue from the Federal Government due to drop in crude oil prices, LIRS is committed to tapping into other revenue sources such as consumption tax from hotel occupancy, withholding tax on contracts, rent royalties and other areas to shore up revenue.

    He said education and various enlightenment programmes will be put in place to drive this process.

  • LIRS to sanction corrupt tax officers

    LIRS to sanction corrupt tax officers

    The Lagos State Internal Revenue Service (LIRS) said concrete measures are  taken to ensure all eligible taxpayers meet their obligations and sanction  on corrupt tax officers.

    Speaking at the Fate Foundation’s  Alumni Knowledge Building Session held in Lagos, yesterday, the Director, New Growth Areas, LIRS, Mr Adebayo Ayodele  said the Service was  not  ready to  shield its allegedly corrupt officials.

    Central to the achievement of this objective, according to him, is the need to engender a culture that promotes excellence while firmly punishing acts of misconduct amongst staff involved in revenue collection.

    He noted that government aims of providing infrastructure can only be guaranteed when all Nigerians commit to paying their taxes.

    He reiterated that the government is working to improve electronic services ease taxpayers ‘ access to use electronic platforms to handle their tax matters. He pointed out that automation of tax administration services has improved service delivery with regard to indicators for doing business.

    He  said tax avoidance has  become routine, even though it robbed public services of essential funding.

    He  said the service  will continue to put systems in place to ensure its enforcement activities are enhanced.

    The effectiveness of this, he noted, however, is dependent on cooperation from the public as it relates to sharing information on incidents of corruption and illegal activities that are geared at depriving the state of revenue.

    He warned that small business owners  fail to file  returns are  liable on conviction to penalties. He urged small business owners to engage professional and highly skilled tax officers to educate owners of MSMEs and assist with filing of various tax forms.

  • New chair for LIRS

    Lagos State Governor Akinwunmi Ambode has appointed Mr. Olufolarin Ogunsanwo as the Chairman, State Internal Revenue Service (LIRS).

    Ogunsanwo’s appointment was confirmed by the House of Assembly yesterday, on the governor’s request.

    The governor had earlier approved the appointment of new directors to the LIRS Board.

    The new directors include Mrs. Akintola Bolaji, Moroof Oludare Tijani, Mrs. Arinola Kola-Daisi, Seyi Alade, Mrs. Afolayan Folashade and Ayodele Adebayo with Jimi Aina serving as Board Secretary.