The Lagos State Internal Revenue Service, LIRS, says it will recover outstanding taxes from non-compliant taxpayers through third parties, including banks, employers, tenants, debtors and business partners. The agency said the move is backed by section 60 of the Nigeria Tax Administration Act 2025, which grants it the power of substitution.
In a public notice, LIRS explained that the law allows it to direct any person holding or owing money to a defaulting taxpayer to remit such funds to the service. The agency said the mechanism applies to taxes it administers, including Personal Income Tax, Capital Gains Tax, Stamp Duties and Withholding Tax, adding that failure to comply with a substitution notice constitutes an offence.
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LIRS said banks and financial institutions must remit specified amounts without delay and confirm compliance through its e-tax platform, while employers, agents and tenants are required to withhold and transfer funds due to affected taxpayers. The service added that defaulting taxpayers remain responsible for any unpaid balance and warned that non-compliance could attract penalties, enforcement actions and possible prosecution.
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