Lagos Govt. Goes After Tax Evading Multinationals, Others

Fowler
Fowler

The Lagos State Internal Revenue Services, LIRS, has said it would prosecute firms that fail to comply with tax laws, including accurately remitting to the government personal income taxes of their employees. The agency chairman,  Babatunde  Fowler, on Sunday, said about 50 firms are currently defaulting on government taxes, among them multinationals. Fowler said the state had begun auditing an erring multinational company which merely remitted N212m instead of N988m estimated to be the personal income taxes taken from its employees in 2013.
“We have asked the management (of the defaulter company)  to give certain information including their monthly immigration reports which every company which has expatriates must provide,” he said.
“You may ask us how we got the N988m figure. We have what we call industry average rate. Base on the expatriates that they said they have here, they have 901 expatriate and we looked at the industry that they are in; we take an average pay of what those staff earn in other companies,”Fowler explained.
But that did not still yield compliance from the company,  prompting the LIRS to want to go to court.
In spite of companies’ defaults, Fowler had good words for private sector members of the Manufacturers Association of Nigeria, MAN, and Nigeria Employers Consultative Association, NECA, for being over 95 per cent tax complaint. As for the non-organised and informal sub-sectors of the Lagos economy, Fowler informed of government challenges in collecting taxes from them.

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