The Lagos State Internal Revenue Service (LIRS) has notified the public of its intention to commence the prosecution of tax evaders and offenders in Lagos State beginning from April 1, 2016.
“Under the Personal Income Tax Act, a taxable person is statutorily required to file a return of income for the preceding year within 90days from the commencement of every year of assessment (March 31st is the deadline), whilst any employer of labour is required to file all emoluments paid to its employees for the preceding year, not later than 31st of January each year.
“Therefore any taxable person or corporate organisation who fails to file their tax returns with LIRS by the stipulated date is in breach of the provisions of the law, which is a criminal offence that is punishable under the tax laws,” the agency said in a statement on Wednesday.
It reiterated that the full weight of the law will be brought to bear on taxable persons who fail to file requisite returns as provided by the law.
“While many taxpayers have complied willingly by filing their returns in the last months, it is disheartening to note that in spite of all efforts by the LIRS, a large fraction of eligible taxpayers are still not complying, thereby failing to contribute to the common purse for the common good of all. In the wake of little or no proceeds from the federation account, the focus of the present administration in renewing infrastructure and general development of the State cannot be achieved by the attitude of those who deliberately refuse to discharge their civic responsibility to the State.
“Without revenue, all of those things that facilitate our progress as a civilized community will not materialize, if there are no infrastructural developments like roads to get to business sites businesses cannot thrive, if we do not have all the services that government is compelled to offer e.g. security, education, healthcare, and law and order as it is being proffered by the court then we cannot make progress collectively,” it added.
LIRS has in the last three months embarked on massive advocacy and enlightenment programmes, taking people through a process of education on the laws bordering on tax administration and the need and benefits of paying their taxes as at when due.
According to the Executive Chairman of LIRS, Mr. Olufolarin Ogunsanwo, “We have a robust database that captures all taxable individuals and firms in Lagos State as well as transactions for the purpose of audit, so there is no hiding place for any tax evader.”
He therefore calls on every taxable person in Lagos State to take advantage of the window on or before the March 31 deadline to ensure that their tax return has been duly filed.
He added that the Lagos State Attorney General and Commissioner for Justice will through the Rapid Tax Prosecution Unit commence prosecution of tax defaulters without further notice.
“LIRS however wishes to thank the good people of Lagos State who have continually supported the administration of His Excellency Mr Akinwunmi Ambode through voluntary and prompt payment of their taxes and reiterate that we will continue to take full advantage of the provisions of the law to prosecute recalcitrant corporate organisations and individuals.
“It is important to note that all tax evaders and offenders, upon prosecution may be fined or imprisoned or face both as provided in Section 95, 96 and 97 of the Personal Income Tax Act,” the agency concluded.
