Lagos to begin prosecution of tax defaulters
(Nigeria) Residents of Lagos State, may be heading for tougher
times, as the state government, has threatened to commence the prosecution of tax
defaulters.
A statement by Monsurat Amasa, Head, Corporate Affairs, Lagos
State Internal Revenue Service, LIRS on Wednesday in Lagos, said, “In consonance with Section 82 of the Personal
Income Tax Act (as amended), The Lagos State Internal Revenue Service, LIRS, wishes to formally notify the public of its intention to commence the
prosecution of tax evaders and offenders in Lagos State beginning from April
1,2016.
“Under the Personal Income Tax Act, a taxable person is
statutorily required to file a return of income for the preceding year within
90days from the commencement of every year of assessment (March 31st is the
deadline), whilst any employer of labour is required to file all emoluments
paid to its employees for the preceding year, not later than 31st of January
each year. Therefore any taxable person or corporate organisation who fails to
file 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.
“The LIRS, having put all the necessary machineries in place
to ensure the enforcement of the tax laws with effect from April 1, 2016 has warned
all erring taxpayers to comply; reiterating that the full weight of the law
will be brought to bear on taxable persons who fail to file requisite returns
as provided by the law.
“While many taxpayers have complied willingly by filing
their returns in the last months, It is disheartening to note that in spite of
all efforts by the LIRS, a large fraction of eligible taxpayers are still not
complying, thereby failing to contribute to the common purse for the common
good of all. In the wake of little or no proceeds from the federation account,
the focus of the present administration in renewing infrastructure and general
development of the State cannot be achieved by the attitude of those who
deliberately refuse to discharge their civic responsibility to the State.
“Without revenue, all of those things that facilitate our
progress as a civilized community will not materialize, if there are no
infrastructural developments like roads to get to business sites businesses
cannot thrive, if we do not have all the services that government is compelled
to offer e.g. security, education, healthcare, and law and order as it is being
proffered by the court then we cannot make progress collectively.
“LIRS has in the last three months embarked on massive
advocacy and enlightenment programmes, taking people through a process of
education on the laws bordering on tax administration and the need and benefits
of paying their taxes as at when due.
“We have gone further to develop various initiatives to ease
the methodology of paying taxes in Lagos, starting with the simplification of
our tax payment processes, through the compression of the ‘Tax Form A’ from
6pages to 2 pages, introduction of new payment platforms, e-submission of
annual returns, creation of the LIRS hotline (0700CALLLIRS) and help desks in
all tax stations, relaxation of requirements for replacement of lost e-TCC
among others, all of which are focused on building convenience into the payment
of taxes and subsequently promoting voluntary compliance.
“We are now going to the next phase, which is enforcement
and prosecution, that is taking full advantage of the provisions of the tax
laws to apprehend and prosecute tax defaulters.
According to the Executive Chairman of LIRS, Mr. Olufolarin
Ogunsanwo, ‘We have a robust database that captures all taxable individuals and
firms in Lagos State as well as transactions for the purpose of audit, so there
is no hiding place for any tax evader.”
He therefore, called on every taxable person in Lagos State
to take advantage of the window on or before the March 31st deadline to ensure
that his or her tax return has been duly filed.
He added that The Lagos State Attorney General and
Commissioner for Justice will through the Rapid Tax Prosecution Unit commence
prosecution of tax defaulters in Lagos State without further notice.
“LIRS however, wishes to thank the good people of Lagos
State who have continually supported the administration of Governor Akinwunmi
Ambode through voluntary and prompt payment of their taxes and reiterate that
we will continue to take full advantage of the provisions of the law to
prosecute recalcitrant corporate organisations and individuals.
“It is important to note that all tax evaders and offenders,
upon prosecution may be fined or imprisoned or face both as provided in Section
95, 96 and 97 of the Personal Income Tax Act.”
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