LIRS Clarifies Power of Substitution on Unpaid Taxes
The Lagos State Internal Revenue Service has dismissed widespread claims that it plans to deduct unpaid taxes directly from residents’ bank accounts. Ayodele Subair, Executive Chairman of the Lagos State Internal Revenue Service, made the clarification during an interview on Arise TV on Tuesday, January 27. His comments followed public reactions to a recent LIRS notice announcing that the agency would begin engaging third parties to recover outstanding tax liabilities from defaulting taxpayers. In the notice issued over the weekend, LIRS explained that it would rely on legally approved third parties such as banks, employers, tenants, debtors, and business partners to enforce tax recovery where obligations remain unpaid. The agency stated that this action is backed by Section 60 of the Nigeria Tax Administration Act, 2025. According to the notice, the LIRS power of substitution allows the Service to direct any individual or organization holding money on behalf of a taxpayer, or owing mo...
