primary objective of the Hotels Consumption Fiscalisation Regulations is to
enable LIRS have instant, automated, electronic oversight over all consumption
transactions in all Hotels, Restaurants and Events Centers in Lagos State. LIRS
automated electronic oversight is expected to reduce and ultimately eliminate
the evasion of the provisions of the Lagos State Hotels Consumption Tax Law.
of Electronic Fiscal Devices.
the commencement of the Hotels’ Consumption Fiscalisation Regulations, every
Owner, Manager or Controller of any Hotel, Restaurant or Event Centre in Lagos
State (“the Collecting Agent”) is mandatorily required to install in its
business establishment, and subsequently register with LIRS, functioning
Electronic Fiscalisation soft and hardware devices (“EFD”) for the purpose of
recording all taxable transactions to which the provisions of the Lagos State
Hotels Consumption Tax Law applies. An EFD is a specialised Consumption Sales
registration of all EFDs with LIRS is required to be undertaken within seven
(7) days of the Collecting Agent receiving the registration notification from
registration, all the Collecting Agents’ invoices for goods and services
rendered in the Collecting Agent’s establishment, must statutorily be in compliance
with the provisions of the Hotels Consumption Fiscalisation Regulations; .i.e.
using the EFD and the EFD registration number. The Collecting Agents are also
mandatorily required to keep copies of all transaction invoices and receipts
issued for any future LIRS audit.
the EFD suffers any malfunction, fault, goes for maintenance, is lost or
otherwise goes offline; such fault or hindrance must be ratified by the
Collecting Agent as soon as possible, with formal notice of such an incident
served on LIRS within seven (7) days of any such occurrences.
registered EFDs are required to be connected to the LIRS Central Information
Electronic System (“CIES”) which System serves as the Data Interchange between
the Collecting Agent’s premises and the LIRS offices.
the area where the Collecting Agent’s business is sited finds it difficult to
establish data connection with the CIES, such Collecting Agent must temporarily
use the LIRS provided alternative means of recording the consumption
transactions at the Collecting Agent’s establishment.
an offence for a Collecting Agent to fail to register or to use a registered
EFD; or fails to report any fault or malfunction with a registered EFD, or to
notify LIRS of all a Collecting Agent’s points of sale or branches from which
the Collecting Agent carries on business.
10 and 11 of the Hotels Consumption Tax Law of Lagos State imposes various
penalties for any of the above mentioned infractions; from interest penalty at
the rate of 5% per annum above the prevailing Central Bank of Nigeria minimum
rediscount rate on any unremitted consumption tax; in addition to a further 10%
penalty on the latter unremitted tax and the interest charged.
Director, Manager, Officer, Agent or Employee of a Collecting Agent who fails
to comply with any of the provisions of the Lagos State Hotels Consumption Tax
Law shall on conviction be liable to suffer 6 months term of imprisonment, or a
fine of N2Million, or both the fine and the term of imprisonment.
obligations on the Collecting Agents to bear the cost of obtaining and
maintaining the Electronic Fiscal Devises, in addition to the extra man-hours
required to ensure statutory compliance with the Hotels Consumption Tax Law and
its Regulations, will only increase the costs of doing business, which
additional costs will be passed on to the consumers.
are no provisions which protect the data of the Collecting Agents. This is
especially as there are no data protection legislations in Nigeria. How will
the data obtained through the LIRS data interchange be protected is not
disclosed in the legislation and regulation.
1. Download: Hotel
Occupancy and Restaurant Consumption Law 2017
Grants Injunction Restraining Lagos State From Enforcing New Consumption
NB: This Legal Alert is
a free educational material, for your general information and enlightenment
ONLY. This Alert, by itself, does not create a Client/Attorney relationship.
Recipients are therefore advised to seek professional legal counselling to
their specific situations when they do arise. Questions, comments, criticisms,
suggestions, new ideas, contributions, etc are always welcomed. This Legal
Alert is protected by Intellectual Property Law and Regulations and is reproduced
by Proshare Nigeria Limited under permission, for the Proshare online
investment community, from Oserogho & Associates [ firstname.lastname@example.org