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

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

  • About sixteen restaurants, hotels and event centres have been shutdown by the Lagos State Government amid clampdown on tax defaulters
  • The Lagos State Internal Revenue Service had sent notice of warning to the owners of hospitality businesses who have failed to pay their taxes
  • Maple Cottage, Imperial Chinese Cuisine, New World Inn, Inspiro Galaria, 7th Heaven and Infinity Platinum Bar and Restaurant are among companies shutdown

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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.

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Lagos State crackdown on hotels, restaurants, hospitality businesses not paying tax
Babajide Sanwo-Olu, the Governor of Lagos State. Photo: Babajide Sanwo-olu
Source: Facebook

Companies Lagos tax agency shutdown

List of the 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.

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“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.

AfDB to provide credit support to women-owned businesses

African Development Bank says it will provide financial support to female-led small businesses operating in Nigeria, in order to reduce the impact of COVID-19 on them.

The bank led by Akinwumi Adesina, has budgeted $50 million for small and medium scale businesses struggling financially in their operation.

The money will be disbursed through First City Monument Bank. AfDB also said it will provide $200,000 through some women-focus agencies.

Source: Legit

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