Restaurants, Hospitality Businesses Closed Amid Crackdown on Tax Evades in Lagos

Some hospitality businesses have been shutdown in Lagos state as Babajide Sanwo-olu-led administration crackdown on tax defaulters.

The clampdown affected sixteen restaurants, hotels and event centres across the state that have failed to pay their consumption taxes between 2013 and 2020.

The closure of the hospitality businesses came almost five months after the Lagos state Internal Revenue Service (LIRS) issued a notice that March 31 will be the deadline to clear outstanding tax, before it was extended to April 14.

List of affected businesses includes:

Café Trance, Maple Cottage,
Imperial Chinese Cuisine,
New World Inn,
Inspiro Galaria,
Grace Garden Event,
Cristabol Place,
And Queens Park Event Centre.

Others are Axor Suites and Blue Moon Hotel, Citi View Hotel, Kamal’s Crib, 7th Heaven and Infinity Platinum Bar and Restaurant, according to News Agency of Nigeria (NAN).

Commenting on the closure on Monday, LIRS legal services director, Seyi Alade, said the tax agency would collect all taxes to ensure there are available capital for the state government to carry out its developmental projects:

“Now, the service has resumed sealing of firms, particularly the hospitality firms; it is committed to continue the exercise until full compliance to tax payment and remittance are achieved.

“Before LIRS embarks on sealing, it must send two letters to the management of the affected firm, reminding it of tax liabilities.

“Both the demand notice and letter of intention to distrain were sent to the management of the hospitality firms, but they failed to act.” Alade said.

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