The Lagos State Internal Revenue Service (LIRS) has clarified its stance on recovering outstanding tax liabilities, dispelling claims that it plans to seize funds directly from defaulting organisations’ bank accounts. According to Dr Ayodele Subair, Executive Chairman of LIRS, the agency’s primary objective is to recover taxes lawfully to enable the government to provide essential public services and infrastructure for residents.
Subair emphasized that taxpayers have the right to challenge any assessment issued to them through appropriate legal channels, and the agency has no intention of imposing taxes arbitrarily. He noted that LIRS prefers voluntary compliance over enforcement, with the ultimate goal of improving voluntary tax compliance, which is currently low.
In an interview on ARISE News Channel, Subair explained that the agency is not rushing to enforce the new tax law, instead encouraging individuals and organisations in default to come forward voluntarily and settle their obligations. He stated that public enlightenment is a priority at this stage, and the notice issued by LIRS was part of the education process to make people aware of the law and the available recovery mechanisms.
Subair acknowledged that the estimated value of outstanding tax liabilities in Lagos State is difficult to quantify, describing the situation as fluid and constantly changing. However, he emphasized that there is significant revenue potential, and the process of recovering unpaid taxes requires time and patience.
Taxpayers are legally entitled to contest assessments they believe are incorrect, and LIRS respects the rule of law, operating as a responsible corporate citizen. Subair noted that litigation is an expected outcome in tax administration, and the agency is not opposed to legal challenges. The introduction of incentives such as tax amnesty programmes to recover outstanding liabilities is not within the authority of LIRS, but rather falls under the purview of the Lagos State Government or the Federal Government.
The LIRS chairman’s comments come as the agency seeks to improve tax compliance and recover outstanding liabilities in a lawful and transparent manner. As the agency continues to educate taxpayers and encourage voluntary compliance, it remains committed to its primary objective of providing essential public services and infrastructure for the residents of Lagos State. With a focus on public enlightenment and voluntary compliance, LIRS aims to improve the state’s tax-to-GDP ratio and contribute to the overall development of the state.
