The Lagos State Internal Revenue Service has initiated enforcement actions against tax defaulters within the state, including the issuance and execution of bench warrants against principal officers of certain organizations.

In an interview with Vanguard, the LIRS Legal Service director Mr. Seyi Alade, said “Bench warrants were issued and recently executed against principal officers of some companies for failing to file their annual returns and respond to the criminal summons issued against them by the courts for the past two years.”

Alade emphasized that the agency plans to expand the enforcement campaign to encompass all tax-defaulting entities and individuals across the state, stating, “This enforcement exercise is a continuous process, it shall be visited on all erring companies and individuals in the state who fail to honour court summons for their failure to file the statutory annual tax returns.”

He further explained the legal requirements, stating, “By virtue of Section 417 & 822 of Companies and Allied Matters Act 2020, every company limited by shares, company limited by guarantee and business name shall once at least in every year make and deliver to the necessary authorities an annual return.”

Alade highlighted the penalties for non-compliance, stating, “Section 81 (3) of the Personal Income Tax (Amendment) Act 2011 posits that any employer that fails to fulfill this obligation is liable on conviction to penalty of N50,000 and N500,000 for individuals and corporate, respectively.”

Regarding false statements or representations in tax matters, he stated, “A person who for the purpose of obtaining a deduction, set off, relief or an overpayment in respect of tax for himself or any other person… is guilty of an offence and liable on conviction to a fine of N50,000 for individuals and N500,000 for corporate bodies or to imprisonment for not more than six months.”