FIRS Shut Down 9 Companies in Lagos for Tax Defaults

Nigeria’s Federal Inland Revenue Service (FIRS) shut down nine companies in Lagos  this week  for owing taxes to the tune of N199.4 million.

A statement by the FIRS spokesperson said the following companies are shut for cases relating to tax evasion or avoidance: DN Meyer Plc, Morrison Industries Plc, Congas Oil, J. Irorun Enterprises, Grizi Nigeria Limited, African Paints Nigeria Limited, and Kesley Greene Nigeria Limited.

The premises of Best Aluminum Limited and Persus Ventures Nigeria Limited were also  shut down by the agency.

The tax collection agency had launched an enforcement exercise between Monday and Wednesday, aimed at recovering millions of naira allegedly owed by these companies in back taxes.

Out of the N199.4 million the nine companies owe the FIRS, DN Meyer Plc owes the highest sum of N54.6 million. The NSE-listed company which operates in the consumer goods sector, has been struggling in recent times to ensure profitability. As a matter of fact, the company’s Q3 2018 financial statement shows that it ran at a loss of N280.1 million.

The second biggest debt, according to the statement by FIRS, is Persus Ventures Nigeria Limited. The company is owing the tax agency a total of N40.83 million.

Congas Oil comes in third place with a total debt of N24.2 million. This is then followed by Best Aluminium Limited which owes N21.56 million.

Another notable name on the list is Morrison Industries Plc which owes N19.81 million in back taxes.

J. Irorun Enterprises was shut down for owing the FIRS a total of N11.59 million. Similarly, Grizi Nigeria Limited owes debt to the tune of N11.35 million.

African Paints Nigeria Limited owes N11.14 million while Kelsy Green Nigeria Limited owes the least amount of N4.3 million.

The Federal Inland Revenue Services, FIRS, frowned at the neglect 0f  the opportunity granted by the Federal government last year for organisation to do voluntary declaration and get some concessions on their tax liabilty. The implementation of various processes (including the Voluntary Assets Income Declaration Scheme, VAIDS) paid off, seeing as the agency ended up generating N5.320 trillion in revenues last year.