Lagos begins tax enforcement, prosecution April 1

…enjoins corporate organizations, individuals to comply with the tax laws

In consonance with Section 82 of the Personal Income Tax Act (as amended), the Lagos State Internal Revenue Service (LIRS) on Wednesday notified the public of its intention to commence the prosecution of tax-evaders and offenders with effect from April 1, 2016.

Under the Act, a taxable person is statutorily required to file a return of income for the preceding year within 90 days 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 which fails to file tax returns with the 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.

In a release signed by Head, Corporate Affairs, Monsurat Amasa, LIRS said that having put all the necessary machineries in place to ensure the enforcement of the tax laws, with effect from April 1, 2016, it had warned all erring tax-payers to comply, while reiterating that the full weight of the law would be brought to bear on taxable persons, who failed 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 tax-payers 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 civilised community will not materialise, 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,” the agency said.

It said, besides, that “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, which 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 the state to take advantage of the window on or before the March 31st deadline to ensure that his or her tax return had been duly filed.

He added that the Lagos State Attorney-General and Commissioner for Justice would, through the Rapid Tax Prosecution Unit, commence prosecution of tax defaulters in without further notice.

LIRS, however, thanked the good people of Lagos State who had supported the administration of His Excellency, Mr. Akinwunmi Ambode, through voluntary and prompt payment of their taxes, and reiterated 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 Sections 95, 96 and 97 of the Personal Income Tax Act.