20th May, 2014
Seun Bisuga
Officials of Iru-Victoria Island Local Council Development Area (LCDA) have sealed the business outlets of tax defaulters following a court order to do so.
The officials who told P.M.NEWS that they had served the defaulters notice of payment said it became necessary to seal the offices to ensure that the law was enforced.
Premises affected include Bonzai Restaurant on Akin Adesola Street, Local Restaurant on Ahmadu Bello Way, Natives Restaurant on Oju Olobun Close, Moonway Hotels Limited, etc.
The manager of Moonway told P.M.NEWS that although the action of the LCDA was going to affect his business, he said they were doing their job.
When asked if he had been served a notice, he said, “We got a notice and we were making efforts to pay. I can’t stop the officials from doing their jobs.”
The LCDA said the exercise became inevitable after the tax defaulters refused to appear in court.
“The merriment and entertainment tax law is under section 7 of the Local Government Bye Laws. And liquor licence is under section 2 and 10 of the bye laws, coupled with the Fourth Schedule,” an official said.
He added: “After many honest attempts to amicably resolve the issue, the council official swung into action by clamping down on defaulters. We have zero tolerance for non compliance, our aim is to ensure compliance.”
Other defaulters who did not want their premises sealed quickly dashed to the office of the local council to pay their outstanding taxes.
A manager whose premises was almost sealed and who did not what to be mentioned said the levies slammed on her organisation was too much.
She wanted the local council to review its charge.
“The levy is too high. We cannot pay that much. The local council should please review the charge,” she said.
An official of the LCDA countered the claims that the levy was too high. He said tax collection in advanced countries are much higher.
“In the US or UK, you cannot afford to default on tax payment particularly after you have been served a notice. That translates to tax evasion anywhere in the world.
“In Nigeria we flout the law particularly when it comes to paying our taxes. All that has to change if we crave to make this country great. The government will play its part but the citizenry has to do the same,” he said.