Lagos State Internal Revenue Service (LIRS) has shut 18 hotels, restaurants and event centres for failure to pay their taxes under the Hotel Occupancy and Restaurant Consumption Laws of Lagos State 2009. The hotels and restaurants were said to owe the state a cumulative sum of over N91million.
The affected hotels are Starfire Hotels, Ikeja; Zaaz Hotel Limited, Ikeja; Le Parisian Suites, Opebi; Cottage Guest House Two, Opebi; Suite 29, Ikeja; Bec Ind Catering Company, Ikeja; Hotel De Jas, Oshodi; Florida International Motel, Ajao Estate; Atlantic Product Limited, Victoria Island; Soul Centre, Okota and Taesuites Limited, Ikoyi. Others include Larex Hotels Limited, Shomolu; Piccadily Suite, Lekki; D Yard Entertainment, Surulere; Peaceland Hotels, Yaba; Nufcam Hotel Limited, Ojodu Berger; Posh Spice, Surulere and Cristabol Place, Lekki.
The Director Legal Services of the LIRS, Mr. Seyi Alade, while speaking during the state-wide tax enforcement exercise yesterday, warned that defaulting hotels, restaurants and event centres would henceforth face the full wrath of the law if they fail to deduct and remit their taxes as provided by the law.
According to him, failure to deduct and remit taxes as and when due attracts very serious penalties that may lead to the sealing off and the seizure of the goods and chattels of the affected entities. He said the LIRS usually gives a long rope by issuing multiple notices to the taxpayers to inform and also remind them of their tax liabilities adding that only recalcitrant taxpayers are shut down as in the present case.