Home News Lagos shuts oil firm over N4.9bn tax evasion

Lagos shuts oil firm over N4.9bn tax evasion


LAGOS – The Lagos State Internal Revenue Service (LIRS) on Wednesday sealed an oil and gas consultancy firm, BakLang Allianz International Ltd., over N4.9 billion tax evasion.

Mrs Folasade Coker-Afolayan, the Head, Distrain Unit of LIRS, told the News Agency of Nigeria (NAN) that the company defaulted in the remittance of the Personal Income Taxes of their workers.

Coker-Afolayan, who led the team, said that the company’s tax liabilities were between 2004 and 2009.

“We decided to seal Baklang Allianz International Ltd., because it owed the Lagos State Government N4.9 billion. The amount is the unremitted workers’ income tax for six years.

“The company will not be reopened for business until the tax liability is remitted,” she said.

Coker-Afolayan said that the state government had written the management of the firm several times on the need to remit the tax.

According to her, the Distrain Unit of the LIRS had no alternative than to seal the company when the management failed to respond to its request.

She reiterated that payment of tax is the civic responsibility of individuals and corporate organisations that enables government to meet its obligations to the citizens.

The team leader also urged companies to remit their taxes promptly to avoid being sealed.

She said that payment of taxes remained a civic responsibility that must be adhered to by everyone.

Reacting to the development, Mr Keem Bakare, the Managing Director of BakLang Allianz International Ltd, said that they had written to LIRS through the company’s legal unit on the need to adjust the alleged tax liability.

Bakare advised the Lagos State Government to review its approach in enforcing tax laws.

LIRS, which commenced operations in 2007, had so far sealed 97 companies between January and May over alleged tax evasions.

The cumulative worth of the unremitted tax to government, mainly personal income tax deducted from workers salary in Lagos state in the period under review, amounted to N627.2 million.

LIRS had in 2013 shut 250 companies for not remitting N2.7 billion workers’ personal income tax. (NAN)

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