ODIRS Kick-off Enforcement of Consumption Tax on Event Centres and Hotels

Friday Omosola/Akure

The Ondo Internal Revenue Service (ODIRS) has on Friday embarked on the enforcement of payment of Consumption Tax on Hotels and Event Centres across the State.

During the enforcement journey, three (3) Hotels and two Event Halls were sealed in the State capital.

Addressing newsmen, the leader of the enforcement team and Assistant Director, Legal Department, Barrister Bayo Ogunsuyi said sealed hotels and event halls failed to comply with the remittance of the Consumption Tax law.

Ogunsuyi said: “All taxes that are not remitted to the designated account of the state within the time allowed shall in addition to other penalties, attracts five percent (5%) interest per annum above the prevailing Central Bank of Nigeria Minimum Rediscount Rate as determined at the time of the actual remittance.

“If a collecting agent fails to file a report and remit Taxes (the Goods and Services Tax) collected within the time allowed by this Law, the Agent shall in addition, to interest payable under Section 109 above, pay a penalty of ten percent (10%) of the amount of Tax due, the law states.”

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He noted that the agency had received Court orders before sealing properties.

Furthermore, he pointed out that the enforcement is the first of its kind in the year 2022.

In the same vein, the Head of Hotel Consumption Tax Department, Miss Pamela Olugbemigun, said the sealed hotels failed to comply despite several meetings with management, served Best of Judgement form ( BOJ) and also Notice of Compliance, but still refused to comply.

She let out that the agency is acting based on the dictate of the law and the actions are not to witch hunt anyone.

Miss Olugbemigun enjoined all collecting agents in the hospitality industry to report and remit the 5% monthly Consumption Tax to the ODIRS, so as to avoid unnecessary embarrassment and its consequences.

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