Lagos floats electronic invoicing device

The Lagos state government has announced the use of
Electronic Revenue Assurance (ERA) invoicing system to enhance
transparency and accountability in the remittance and collection of
consumption tax by businesses.

Speaking at a stakeholders meeting at the state house on
Thursday, Ayodele Subair, chairman, Lagos Inland Revenue Service
(LIRS), said the introduction of the device is part of the
government’s effort to ensure the provisions of the 2017
consumption tax regulations.

Subair said the ERA will provide empirical evidence of
sales.

He explained that members of the public were the bearers of the
tax, adding that business owners only act as collecting agents.

Akinyemi Asade, the state commissioner for finance, who was also
present, said though Nigeria has moved up 24 points on the ease of
doing business ranking, paying taxes only increased 11 points.

He added that the use of ERA will end the era of an unending tax
audit of businesses and prevent outright evasion of tax.

Olusegun Banjo, the state commissioner for economic planning and
budget, said the government has monitored the spending lifestyle of
Lagosians, which he said does not correlate with the income
declared by businesses.

He said owing to the persistently growing population of the
state, the government needed to generate more revenue to provide
infrastructure.

Adeniji Kazeem, attorney-general and commissioner for justice,
represented Adesola Odunlami, solicitor-general and permanent
secretary, said business owners found guilty of tax evasion stand a
fine of N500,000 or six months imprisonment or both.

In December 2017, LIRS shut 11 hotels, restaurants and event
centres over alleged failures to remit their taxes under the hotel
occupancy and restaurant consumption laws of Lagos state 2009.

An operative from AV Imperial Technologies Limited said
collecting agents have three options to key into the ERA system;
use of android phones, use of point of sale (POS) device and sales
data recorder (SDR) hardware.

The Lagos state government has announced the use of
Electronic Revenue Assurance (ERA) invoicing system to enhance
transparency and accountability in the remittance and collection of
consumption tax by businesses.

Speaking at a stakeholders meeting at the state house on
Thursday, Ayodele Subair, chairman, Lagos Inland Revenue Service
(LIRS), said the introduction of the device is part of the
government’s effort to ensure the provisions of the 2017
consumption tax regulations.

Subair said the ERA will provide empirical evidence of
sales.

He explained that members of the public were the bearers of the
tax, adding that business owners only act as collecting agents.

Akinyemi Asade, the state commissioner for finance, who was also
present, said though Nigeria has moved up 24 points on the ease of
doing business ranking, paying taxes only increased 11 points.

He added that the use of ERA will end the era of an unending tax
audit of businesses and prevent outright evasion of tax.

Olusegun Banjo, the state commissioner for economic planning and
budget, said the government has monitored the spending lifestyle of
Lagosians, which he said does not correlate with the income
declared by businesses.

He said owing to the persistently growing population of the
state, the government needed to generate more revenue to provide
infrastructure.

Adeniji Kazeem, attorney-general and commissioner for justice,
represented Adesola Odunlami, solicitor-general and permanent
secretary, said business owners found guilty of tax evasion stand a
fine of N500,000 or six months imprisonment or both.

In December 2017, LIRS shut 11 hotels, restaurants and event
centres over alleged failures to remit their taxes under the hotel
occupancy and restaurant consumption laws of Lagos state 2009.

An operative from AV Imperial Technologies Limited said
collecting agents have three options to key into the ERA system;
use of android phones, use of point of sale (POS) device and sales
data recorder (SDR) hardware.