Tax Evasion: Ondo seals three hotels, two event centres

Internal Revenue Service officer seal property

Internal Revenue Service officer seal property


In line with the state’s enforcement of payment of consumption tax, Ondo State Internal Revenue Service has sealed up three hotels and two event centres in Akure.

This was confirmed by ODIRS leader of the enforcement team and Assistant Director (Legal Department), Mr Bayo Ogunsuyi, on Saturday.

He explained that the sealed hotels and event centres had failed to comply with the remittance of the Consumption Tax.

“According to the law, all taxes that are not remitted to the designated account of the state within the time allowed shall in addition to other penalties, attract five per cent interest per annum.

“(This is) above the prevailing Central Bank of Nigeria Minimum Rediscount Rate as determined at the time of the actual remittance.

“If a collecting agent fails to file a report and remit taxes (the Goods and Services Tax) collected within the time allowed by this law.

“The agent shall in addition, to interest payable under Section 109 above, pay a penalty of 10 per cent of the amount of tax due,” he said.

Ogunsuyi noted that the agency had received the court’s order before sealing the properties.

He also stated that the enforcement was the first in 2022.

Also speaking, the Head of Hotel Consumption Tax Department, Miss Pamela Olugbemigun, said that the defaulted hotels had failed to comply in spite of holding meetings with their heads.

She said that the service had also served the hotel Best of Judgement form and also Notice of Compliance but still refused to comply.

Olugbemigun explained that the agency was acting based on the dictate of the law, adding that the actions were not to witch-hunt anyone.

She urged all collecting agents in the hospitality industry to report and remit the 5 per cent monthly Consumption Tax to the ODIRS to avoid unnecessary embarrassment.


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