Lagos to Shut Down Companies over Tax Matters

Lagos to Shut Down Companies over Tax Matters
…Gives Monday Deadline To Remit All Outstanding Payments

The Lagos State Government on Sunday said it will commence the process of shutting down the corporate headquarters of organisations in the State who have defaulted in remitting statutory taxes to government from Monday, November 20.

In a statement signed by the Commissioner for Finance, Mr. Akinyemi Ashade, the State Government said some banks have failed to remit statutory taxes including withholding taxes on bank interest for more than 10 years, stating that the Government has resolved to result to all lawful means to ensure compliance with statutory tax remittances.

He warned that any company found to have evaded tax would not be spared, adding that it is in the interest of defaulting companies and their management to remit the statutory taxes to the State within the grace period to avoid embarrassment to them and their shareholders.

“All law abiding corporate organisations are advised to adhere to this directive as the State Government has given enough grace period for them to remit their taxes. The Government will on Monday, November 20, commence the process of shutting down the headquarters of corporate organisations, including banks who have failed to remit statutory taxes to Government coffers. It is in the interest of companies who are yet to remit their taxes to do so on or before Monday,” Ashade said.

“Prompt payment of tax will enable the Government provide the necessary infrastructure and improve the standard of living of the people, but when people pay their taxes promptly, Government is encouraged to do more. The administration of Governor Akinwunmi Ambode has shown in the last two and half years that taxes paid are judiciously spent on projects that have impacted positively on the lives of Lagos citizens,” Ashade said.

It would be recalled that the State Government had last week directed all its revenue agencies to ensure prompt payment of taxes including land use charges and also commence enforcement of payment by all tax defaulters with immediate effect.

The Government had lamented that many residents were not fulfilling their civic obligation of paying their taxes and that the prevailing situation would adversely affect government’s infrastructural renewal drive currently ongoing across the State, thus necessitating the decision to go all out to recover unremitted taxes.

SIGNED
AKINYEMI ASHADE
COMMISSIONER FOR FINANCE
LAGOS STATE
NOVEMBER 12, 2017