Monsurat Amasa-Oyelude, head of corporate communications at LIRS, made the announcement in a statement on Sunday.

Speaking on the issue, Ayodele Subair, LIRS executive chairman, said employers of labour operating in Lagos State must adhere to the deadline.

He said failure to comply will result in penalties and other legal sanctions outlined in Section 81(3) of the Personal Income Tax (Amendment) Act 2011, which stipulates January 31 as the deadline for filing annual tax returns.

The FIRS chairman said the exclusive platform for filing annual income tax returns in Lagos State is the LIRS e-tax portal, as manual filing is no longer permissible.

He urged businesses and employers to leverage the e-tax portal for filing, pointing out that it is easy to use, convenient, and safe.

“The e-Tax portal is designed for the convenience of taxpayers, making tax transactions easily accessible from the comfort of homes and offices,” Subair said.

He said for any employer to file their annual income tax returns on the e-tax portal, they must have a taxpayer identification (ID).

Subair told employers to generate a taxpayer ID—where applicable—for their employees and to file their pay-as-you-earn (PAYE) returns through the e-tax portal.

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The Executive Chairman of the LIRS; Ayodele Subair, in a public notice directed at members of the public, operators and owners of hotels, event centres, restaurants, bars, and other related facilities in Lagos State said the new collection process called the Eco Fiscal System (EFS) is an automated invoicing solution, designed to revolutionize the collection of consumption taxes in Lagos State.

He stated that the EFS evolution is in furtherance of LIRS’ commitment to building convenience into the payment of taxes and easing compliance with tax laws.

“This technological advancement marks a significant leap in our continuous efforts to enhance revenue collection, streamline processes, and improve efficiency in tax administration. It simplifies compliance and improves accuracy”.

Traditionally, HORCT collection has been a tedious task for operators in the past, the manual process often led to errors, penalties and increased costs. However, with LIRS’ cutting-edge software, businesses can now automate and digitize their invoicing and collection processes. Built with operators in this sector in mind, EFS offers real-time online consumption tax billing, collection monitoring, and instant issuance of receipts with a unique invoice number. It also reduces compliance costs, facilitates easy administration and reconciliation for HORCT collections, and fosters transparency.

Subair affirmed that by adopting the EFS, businesses can ensure accurate calculations, eliminating risk of mistakes associated with manual data entry. The system automatically applies relevant tax rates, saving businesses valuable time and resources. He added that the software provides secure and efficient record-keeping, simplifying audits and minimizing compliance risks.

“Our goal is to empower businesses with innovative solutions that enhance their operational efficiency and minimize compliance challenges. Businesses can focus on their core operations, leaving the complex task of tax compliance to our reliable and automated system.”

He enjoined all operators in the hospitality sector to adopt the Eco Fiscal System (EFS), emphasizing that operations on the system become effective IMMEDIATELY as Failure to comply is a contravention of the provisions in Sections 7(1), 8 and 9 of the Hotel Occupancy and Restaurant Consumption Fiscalization Regulation 2017 which attracts penalties as stipulated in Sections 11(2) of the HORC Law 2009.

Subair reiterated that EFS is compatible with various e-commerce platforms and can seamlessly integrate with existing accounting systems, ensuring a smooth implementation process. He promised that LIRS officials would be visiting establishments in the hospitality industry, to integrate the software with existing systems and provide necessary assistance for a seamless transition to the EFS platform.

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In a statement on Tuesday, Monsurat Amasa-Oyelude, LIRS’ head of corporate communications, said Seyi Alade, LIRS director of legal services, disclosed the shutdown while addressing a state-wide tax law enforcement exercise conducted by the service on Monday.

Alade said the tax liabilities of these companies and hotels amounted to more than N356.12 million, adding that this has caused the state a huge loss in revenue.

He said the agency had previously reduced its enforcement activities to promote voluntary compliance by taxpayers, however, certain companies and hotels chose to engage in tax evasion.

“Therefore, the renewed enforcement activities of the Service are targeted at such companies, restaurants, hotels, and event centres,” the director said.

The primary goal is to secure compliance with the remittance of consumption and personal income taxes, enabling the Lagos state government to carry out projects intended for the well-being of the vast populace resident in Lagos.

“These companies deduct PIT from their employees’ salaries at the end of each month, and charge consumption taxes on goods and services purchased by customers.

“Unfortunately, some unpatriotic firms choose to withhold these payments, illegally converting the funds for their own use.”

According to the statement, Alade also said failing to file tax returns or engaging in tax evasion are considered criminal offences that may result in financial penalties and, in some cases, custodial sentences upon conviction.

He warned that the enforcement exercise shall be a continuous one, adding that all erring companies, hotels, restaurants, and individuals in the state will be visited if they refuse to regularise their tax positions immediately or if they fail to comply with all extant tax laws operational in Lagos.

Some of the companies shut down by the service include:

• NTS Nigeria Ltd
• Med-In Hospital & Pharma Services Ltd.
• Danvic Petroleum Int’l Ltd.
• Business Intelligence Technology
• Avaya Nigeria Ltd.
• Gladstone Tech Ltd.
• Courier Plus Services Ltd.
• Kurioucity Ltd.
• Medilag Ventures Ltd.
• Future Oilfields
• Seven Six & Ten Limited

Some of the hotels shut down by LIRS include:

• Blitz Suites & Hotel
• Offshoroomz Hotel
• God’s Grace Hotel
• De Orange Place Ltd.
• De Santos Hotel
• Kentade Hotel Limited
• Chamcee
• Chelsea Suites
• Falode Hotels
• High Climax Hotel
• Chez Moi Apartment
• Excellence Hotel
• Bereans Venture (Tantalizer Ebute Metta)
• La Avril Hotel & Suites
• De Orange Place Ltd.
• Milaco Guest House
• New World Inn
• Model Motels Ltd
• Rely Maritime Ltd
• 4 Seasons Hotel
• Dream Land Hotel
• 343 North Restaurant and Lounge
• Jade Palace Chinese Restaurant

The post LIRS shuts down 34 companies, 23 hotels for ‘tax evasion’ appeared first on New Mail Nigeria.

Akande made this known, while featuring as a guest on The Tax Talk programme on Channels Television recently.

He said contrary to public opinion, stamp is not just for courier services as it is meant to certify the underlying transaction between two entities, whether they are corporate entities or individuals, thus, the framework for stamp duty is to verify the documents for underlying transactions and ensure that they are admissible in court in case any disputes arise.

Akande noted; “It’s interesting to note that stamp duty, a tax law that dates back to 1939, is still in effect today. Although it was reenacted in 2004 and has been updated over time through the finance act, the basic premise remains the same.

“Stamp duty places the responsibility on those involved in certain transactions to provide documentation that explains the details of the transaction. For example, if someone purchases an item from another person, a receipt is given to show the transaction. This receipt must be stamped to be considered admissible evidence in court in case any disputes arise. In the past, the postal stamp was used to denote the stamp duty.”

Akande, who noted that Stamp duty has contributed significantly to revenue generation in Lagos State, as the state has generated over N5 million from stamp duty over the past few years, said the agency believes there is still room for improvement.

While stating that the agency is considering the introduction of revenue stamps for wholesalers and distributors for receipts over N10,000 in the state, he noted; “This approach was previously utilized in the 1970s, and we are eager to revitalize it. We are fully committed to engagement and process improvement.

He said the agency has taken the step of digitizing its stamp duty operation by transitioning from manual to electronic processes.

According to Akande, “The Joint Tax Board (JTB), which oversees all Internal Revenue Services (IRSs), the Federal Inland Revenue Service (FIRS), customs, immigration, and other related bodies, has been at the forefront of promoting awareness about stamp duty in general.

“LIRS (Lagos State Internal Revenue Service) has also made significant efforts in this area by holding town hall meetings, issuing public notices and guidance notes, and engaging with professional bodies. However, despite these efforts, the message has not been fully received. It is important to note that the law requires that all transactions between two entities must be stamped, and even items such as cheques have a small stamp on them. This is because they may be admissible in court.

“Therefore, it is your responsibility to ensure that any documents related to transactions above a certain level of expenses are properly stamped, as failure to do so renders them as ordinary paper.

He said LIRS has expanded its presence across various states, with offices conveniently located to better serve taxpayers as its officials are proud to offer assistance with legal proceedings and have desks located in all the courts of Lagos.

“Our team of experts ensures that all necessary documents are properly stamped and verified by the commissioner for stamp duty. We take record-keeping seriously, as it helps to ensure the authenticity of all documents that pass through our hands.

“Proper stamping of documents is essential, whether you’re borrowing money from a bank or renting a property. Failure to do so could render them inadmissible in court. We are here to help certify your documents and ensure they have the necessary stamps to make them legally binding,” Akande submitted.

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In the communique signed by Ayodele Subair, Executive Chairman, LIRS, and Muhammad Nami, Executive Chairman, FIRS on Wednesday, the general public, taxpayers and tax practitioners are charged to provide full support and cooperation to both Agencies for the overall economic benefit of all stakeholders.

According to the MoU, the overall objective of the Joint Tax Audit would be to improve tax administration by reducing tax compliance cost thereby enabling ease of doing business in the country.

Speaking on the MoU, Ayodele Subair, Executive Chairman, LIRS, said while the importance of the agreement was to foster greater collaboration between the two agencies, “There is no reason to debate the above as it has been established that tax compliance and good governance are expected to co-exist as the undividable social contract that binds citizens and governments anywhere in the world. Therefore, citizens and governments are expected to fulfil their end of the bargain in achieving a balance.”

According to the FIRS Executive Chairman, Muhammad Nami, ‘’the cooperation would enable the two authorities to work as a team in sharing relevant information that would assist both parties in their tax administration and enforcement roles as it would also provide capacity building between both tax authorities.

We will carry out a joint audit and investigation as a team, we will also conduct an automatic exchange of information for gathering data for the purpose of tax administration. With that information, we would be able to carry out tax administration seamlessly,” he submitted.

The communique says while the notice was issued for the information and guidance of the general public, taxpayers and tax practitioners in line with the memorandum of understanding, the collaboration between both Agencies in the area of exchange of information will ensure efficiency, accurate assessments and increased revenue for funding of Government expenditure,

FIRS and LIRS, the communique says further, are leveraging on their existing distinct competencies in tax administration to collaborate in the areas of exchange of information, harmonization of an integrated tax system and joint tax audit or investigation exercise (where necessary) in carrying out their respective mandates for the purpose of optimizing tax revenue to the Federal Government and the Lagos State Government respectively.

The collaboration is expected to improve tax administration with a view to enhancing tax revenue generation, creation of a robust database and improve on the country’s tax-to-GDP ratio.

The parties (FIRS and LIRS) are expected to establish a Joint Audit or Investigation Team to be known as the FIRS/LSBIR JAIT (hereinafter referred to as “JAIT”), whose membership shall be determined by both parties to conduct a joint audit or investigation exercise which shall be concluded timeously.

The communique assured the public that employees of both parties will abide by the Code of Conduct and Ethical compliance to assure that the implementation of the MOU does not impact negatively on the taxpayers and the parties.

The post LIRS, FIRS issue public notice on joint tax audit/investigation appeared first on New Mail Nigeria.

LIRS had requested the Yoruba actress to pay N18,640,092.00 as personal income tax within seven days or face consequences of defaulting.

According to the Lagos government, Ojo has a tax liability of N7,376,000.00 for the year 2022 and an outstanding liability of N11,264,092 for the 2021 income year.

But Ojo fumed that she is not ready to pay.

Sharing the pictures of the personal income tax signed on the letterhead of the LIRS on her verified Instagram handle, Ojo said she will not pay and is ready to be arrested.

She wrote, “Jidesanwoolu @lagosstategovt, please, how do you people come up with these outrageous personal income taxes you send on a daily basis?

“After paying different types of taxes for one’s businesses, house & all…. you still come up with all this huge amount and give me 7 days to pay up, lol.”

Ojo narrated how she went to the office of the LIRS to explain all she earns as a businesswoman which she did only for her to get the outrageous levy from the state government.

“Make i go thief ni? I ask again, “How do you (sic) people come up with such outrageous bills,” she queried.

“I don’t know how much you think I get paid. Hence, your team will come up with this conclusion.”

She further questioned what the government has done to improve her life, adding, “I have single-handedly raised my kids and so many others, plus myself without a single help from the government. Yet you feel so entitled to reap over 100 per cent from where you did not sow.”

“Nothing is working right in this country, but yet you feel the need to take from where you have not sown.”

Ojo added that the government is free to come arrest, jail her and also close down her business because she is not ready to pay the levy.

The post I won’t pay N18m tax arrears, Iyabo Ojo tells Lagos govt. appeared first on New Mail Nigeria.

The Lagos State Government has filed an alleged tax evasion charge against an interior designer and businesswoman, Ehizogie Ogbebor.

The post Lagos charges celebrity businesswoman with tax evasion appeared first on New Mail Nigeria.

The LIRS Executive Chairman, Mr Ayodele Subair made this known in a statement signed by the Head, Corporate Communications of LIRS, Monsurat Amasa on Sunday.

According to the LIRS Executive Chairman, all businesses and employers of labour residents within Lagos State must file their annual income tax returns on or before January 31, 2023, as failure to comply with the directive would attract penalties as well as other statutory sanctions as stipulated in section 81 (2) of the Personal Income Tax Act (PITA) Cap P8 LFN 2004 (as amended).

“For filing the annual income tax returns in Lagos State, the only available platform is the LIRS e-Tax portal: https://etax.lirs.net. The e-Tax portal is built for the convenience of taxpayers and is easy, convenient and safe. All businesses and employers of labour are advised to use the e-Tax portal to file their returns.

“With the eTax system, corporate bodies are expected to find it more convenient to carry out tax transactions in the comfort of their homes and offices, Subair noted.

To be on the eTax platform, corporate bodies can follow these steps: Visit https://etax.lirs.net, input your company payer ID, and password, and click login; Step two: Generate your bill and Step three: Make your payment.

“Taxpayer ID of all employees is compulsory for the annual income tax returns to be successfully filed on the e-Tax portal. Therefore, all employees and taxable persons within the State are advised to generate a taxpayer ID (where applicable) and file their individual annual income tax returns on the e-Tax portal.”

For more information or inquiries, taxpayers are enjoined to visit the agency’s website: www.lirs.gov.ng, follow the various LIRS social media platforms: @lirsgovng, email: etaxinfo@lirs.net or call the LIRS customer care hotline: 0700CALL LIRS (0700-2255-5477).

The Act stipulates January 31st as the deadline for filing of annual income tax returns, failing which a penalty accrues.

The post LIRS Reaffirms January 31 Deadline For Filing Of Annual Tax Returns By Employers of Labour appeared first on New Mail Nigeria.

In accordance with the provisions of Section 41 of the Personal Income Tax Act LFN 2004 as amended, all taxable person(s), including self-employed, employees, professionals, in Lagos State to file their individual annual tax returns for 2020 Year of Assessment.

According to the Executive Chairman, LIRS, Ayodele Subair, “Statutorily, the filing of Individual Annual Tax Returns expires on March 31st of every fiscal year, and attracts penalties for defaulters. Taxpayers are thereby urged to take advantage of this extension to perform their civic obligation.

The extension of the deadline is in response to appeals made by taxpayers as well as an attempt to assuage the effect of the pandemic on the taxpayers and residents of Lagos State.”

LIRS implores taxpayers with difficulties in filing of their annual return to seek assistance with specially designated staff at our tax stations statewide or call our Customer Care representatives on 0700CALLLIRS (0700-2255-5477)

Further updates on LIRS business operations and alternative payment platforms of the service can be obtained by visiting the LIRS website (www.lirs.gov.ng), and its various social media platforms @lirsgovng.

Lagos State Internal Revenue Service (LIRS) appeal to residents of Lagos State to support the efforts of the Lagos State Government ably led by Babajide Sanwo-Olu by adhering strictly to the safety guidelines as issued by relevant health authorities.

The post LIRS extends deadline for filing of individual annual tax returns to April 14, 2021 appeared first on New Mail Nigeria.

The individual tax returns are to be filed in accordance with the provisions of the tax law, section 41 (1) (3);

* For each year of Assessment, a taxable person shall without notice or demand file a return of income in the prescribed form containing the required information with the tax authority of the State in which the taxable person is deemed to be a resident together with a true and correct statement in writing containing:
* A taxable person shall file with the relevant tax authority the returns as stipulated in this section within 90 days from the commencement of every year of Assessment (31st March)

According to The Executive Chairman, LIRS, Ayodele Subair, “the statutory deadline to file Individual Tax Return is March 31, 2021 and is just 2 weeks away. Therefore, I urge all taxable residents in Lagos State to comply with the tax laws and file on time, to avoid penalties and interests which may accrue against defaulters.”

Given the safety protocols in Lagos State necessitated by the Covid-19 pandemic, LIRS charges all individual taxpayers residing in Lagos State to prepare and submit their Personal income tax returns via the electronic filing system module of the eTax platform, introduced to make the filing process seamless and timely.

All relevant tax forms for the purpose of income tax returns can be downloaded from and submitted through the agency’s digital platform: https://etax.lirs.net. Taxpayers experiencing difficulties with the eTax platform may contact the specially designated officers at our tax stations or call our customer contact centre on 0700-CALLLIRS (0700 2255 5477)

The LIRS wishes to remind residents and businesses to continue to adhere to all covid-19 guidelines as stipulated by the relevant health authorities and the Lagos State Government.

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