Lagos gives 10-day ultimatum to 5 million tax evaders

Posted by admin Lagos, State News Wednesday, March 21st, 2012

The Lagos State Government has given 10 days ultimatum to tax defaulters in the state to comply or relocate from the state to avert the full wrath of the law, saying it is no longer business as usual in the state for tax evaders.

Speaking with newsmen at a world press briefing in Lagos, the Special Adviser to the Lagos State governor on Taxation, Mr. Abimbola Shodipo said the large number of tax defaulters in the state was becoming worrisome to the government.
The special adviser lamented that of the eight million people residing in the state only 2.7 million people were tax compliant, saying the state government could no longer harbour over 5.3 people living parasitically on the tax payers, thereby shortchanging the system.

Shodipo, who explained that the eight million people did not include the unemployed members of the society, added that those complying with tax payment in the state included those in the civil service, corporate and extractive industry.
According to him, “we are now moving into vigorous enforcement level to ensure that few do not keep on funding all of us. From today, we will ensure we prosecute where applicable. Our responsibility as a state is increasing. It will be sheer irresponsibility for the state to allow few people to fund majority and look the other way.”

Also speaking, the Senior Special Assistant on Justice, Mr. Lanre Adesola said the Lagos State government had adopted many measures in the past to encourage tax compliance, saying it was a criminal offence not to pay tax .
According to him, “that is to violate the provision of the applicable tax laws. Now the state is going to the second level of enforcement. And what that means is that we will begin to prosecute tax defaulters and evaders.

“Today is the 20th of March and under the personal income tax law that was amended any tax payer resident in Lagos State must file his tax return for last year on or before the 31st of this month. That is the statutory obligation.
“The implication of this is that in 10 days time, anyone who has not filed his tax return with the LIRS has committed an offence. Not to file his tax return is a criminal offence and to also file wrongly is also punishable under the law.” Harping on the role of employers, he explained that their responsibility was to deduct and remit it into the coffers of the state government, warning that if they failed to deduct and remit to the state government they were liable to be punished under the law.

“The attorney general of the federation last week gave the Lagos State Commissioner for Justice, Mr. Ade Ipaye, the executive fiat to prosecute tax offenders in the state under the personal income tax act.
“The implication of this is that we now have the full authority to prosecute criminals either under the revenue administration law of the state or the personal income tax law.”

of the state. And anyone who is convicted, he or she becomes an ex-convict and it goes beyond going to prison. This is because the substantive part will still be paid into the coffers of the state government,” he added.
The Executive Chairman, Lagos State Internal Revenue Service(LIRS) Mr. Tunde Fowler said henceforth failure by banker to render returns, books, document and information on demand within 7 days has a penalty of N500,000 for corporate organization and N50, 000 having contravened section 43 subsection 3 of the Personal Income Law as amended in 2011.
Fowler added that false statement and returns will attract N500,000 for corporation and N50, 000 for individuals, adding that anyone caught touting or posing as government tax collectors will pay a penalty of N100, 000 or three years imprisonment or both.

-Sunwp_posts