Lagos State Government today vowed to go very tough on corporate organizations deducting taxes from employees but failing to remit same to the state government, stressing that henceforth such organisations will be made to pay a mandatory fine of N500 thousand, while the Managing Director will be sent to six months jail term.
Commissioner for Justice, Lagos State, Mr. Ade Ipaye made the revelation at a joint press breifing with the LagosState Internal Revenue Service(LIRS). He explained that the state government has done alot of public enligtenment on the issue adding that the next step therefore would be enforcement of the law.
”We have refined our processes in terms of educating the people to encourage them on payment of tax, the next step is to go on and enforce the law,” he said.
The Commissioner explained that it is wrong for people to desist from payment of taxes simply because they are providing for themselves essential services which the state ought to provide for them.
”The idea that people generate power, water and other services for themselves and therefore should not pay tax is a dangerous concept. The essence of taxation is the real distribution of income, it goes beyond personal interest,” he said.
He warned that those who fail to abide by the law should be ready to face the consequences. ”Whatever happens to you in the lawcourt for ignoring notices or letters from tax office would be your fault.”
Also, Special Adviser to the Governor on Taxation and Revenue, Abimbola Shodipo said every corporate entity in any state is constitutionally bound to pay some tax which might vary from federal, state and local government.
In his reaction, Chairman of the State Internal Revenue Service (LIRS,) Tunde Fowler said the experience has shown that professionals were the ones evading taxes in the state.