Nonpayment of taxes is a felony punishable by the government. The Lagos State government appears to have recently focused on artists.
On Monday, June 5, 2023, the government filed a 12-count charge against Ehizogie Ogbebor, the managing director of an interior firm and a social media celebrity, for allegedly failing to file tax reports.
Since 2014, she has allegedly refused to pay personal income tax to the state internal revenue office within the time frame required by law.
According to the indictment, the defendant failed to pay her tax as a taxable personality in Nigeria, which violated Sections 41 and 94 (1) of the Personal Income Tax Act, Cap. P8, Laws of the Federation of Nigeria, 2004.
The offenses also violated Sections 56(a) and (b) of the Lagos State Revenue Administration Law, No.8, 2006.
When the case was heard by Justice Yetunde Adesanya of the state High Court in Tafawa Balewa Square on Monday, the state prosecution counsel, Azeez Alli, told the court that it was a tax matter and that he had a request for substituted service.
Alli stated in the motion of notice dated May 10, 2023 that the prosecution was seeking a court order to accomplish substituted serve on the defendant.
He stated, “We seek leave of this court for substituted service to paste the notice on the defendant’s last known address at plot 59, Fola Osibo Street, Lekki Phase 1, Lagos.”
In ruling on the request for substituted service, Justice Adesanya issued the order as prayed, noting that the replacement service shall be made on the defendant.
The case, however, was postponed until October 26.
Also on Monday, the government issued an ultimatum to a prominent Nollywood actress, Iyabo Ojo, to pay N18, 640, 092. 00 in personal income tax within seven days or face jail time.
According to the letter addressed to the actress, Ojo has a tax duty of N7, 376, 000 for the year 2022 and an outstanding debt of N11, 264, 092 for the income year 2021.
The actress was given a seven-day deadline to pay or face the penalties.
In her answer to the letter, Ojo criticized the method through which the tax amount was determined.
“Governor Jide Sanwo-Olu, please, how do you people come up with these outrageous personal income taxes you send on a daily basis?” she wrote. After paying various forms of taxes on one’s business, residence, and everything else, you still come up with this large number and give me seven days to pay.”
This comes four years after the government charged Nollywood actress Monalisa Chinda Coker and former footballer Austine Okocha.
On March 3, 2019, the state High Court in Igbosere issued a bench warrant for Coker’s arrest on suspicion of tax evasion.
The state Ministry of Justice filed a complaint saying that the actress had regularly failed to appear in court.
The state filed a two-count accusation against Monalisa for failing to file annual tax reports and pay income tax on her company for six years.
According to prosecution lawyer Y. A. Pitan, the charges were filed in 2017, and the actress had not appeared in court since then.
The charge LD/5712c/2017 stated, “Failure to furnish and file annual tax returns for the purpose of personal income taxation with the Lagos State Internal Revenue Service, contrary to Section 94(1) of the Personal Income Tax Act 2004 (as amended).”
On January 29, 2019, an ex-Super Eagles captain Austine Okocha, widely known as Jay Jay Okocha, was issued a bench warrant of arrest for failing to pay his income tax.
The state ministry of justice filed a three-count indictment against Okocha for failure to file an income tax return.
The charge was filed on June 6, 2017, according to the then-State Prosecutor, Dr.BabaJide Martins, but the defendant did not appear in court on October 5, 2017.
As a result, after multiple adjournments without the defendant appearing in court following service, the prosecutor asked the court to issue a bench warrant against him.
However, on April 15, 2019, Okocha settled his tax evasion issue with the Lagos State Internal Revenue. The ex-international made an agreeable arrangement with state officials, resulting in the case being dismissed from a Lagos High Court.
Okocha is hardly the first high-profile footballer to face tax evasion charges. In Spain, top players like as Lionel Messi and Cristiano Ronaldo have been hauled before courts in similar incidents. Messi’s 21-month prison sentence for tax evasion was modified to a fine by Spanish courts in 2017, and Ronaldo was fined €18.8 million (£16.6 million) for tax evasion in 2019.
In his response to the matter, Mr Kunle Adegoke, a Senior Advocate of Nigeria, classified tax as statutory, meaning that everyone was required to pay tax on their earnings.
He stated that if the performers’ taxes were not supported by their incomes, the court would not uphold them.
Adegoke noted that once it was established that they were making income, they were required by law to pay tax on that income.
He emphasized that they must be prepared to examine their finances and to contest what the government imposed as payable taxes, but that they would be expected to show the revenue on which their taxes would be calculated.
According to the top lawyer,
“I believe that is the correct legal position.” They will not be required to pay more taxes than they earn than the amount imposed by the law. Except if they can demonstrate that they are not producing income and hence cannot be forced to pay taxes. That is the legal stance.
“I’ve read that some individuals believe it’s political or not. But it will be horrible if it is political, but no one who earns a living is exempt from paying taxes. Even if the reason they are now asking you to pay tax is political, as long as it is supported by law and your income, you must pay.”
Mr Niyi Lawal, another lawyer, stated that there must be a yardstick for which one is taxed in order to see the correlation with what an individual makes. He went on to say that taxation in Nigeria was not done properly.
He mentioned,
“We might be in the same class. We might not be producing at the same rate. It’s as if what you produce is what you supply, and that’s what you get paid for. A tax should not be a class thing where if someone is so and so, they will be taxed that much. You have to look at that person’s output, not simply blanket charges.”
Another lawyer, Mr Olanrewaju Ajanaku, argued that the law was unambiguous about personal income tax, stating that an individual who is privately employed must file returns to the government for assessment of tax paid on or before March 31 of each year.
He stated that if someone refused to do so, they would be breaking the law.
He believes the government is correct in taxing them, and that what the government believes is accruable to them is what it has given them.
According to Ajanaku,
“If they tell any lies in those documents, the government can proceed with an in-depth investigation conducted by a tax authority in order to recover tax undercharged in previous years of assessment.” When a taxpayer is accused of tax evasion, this is done.”
According to Bodunrin Adewole, a lawyer, it is a civic duty for citizens to pay taxes, but there is a distinction between tax evasion and tax avoidance.
Adewole mentioned,
“When you evade tax, you do not pay any tax at all, whereas avoidance means that an individual does not pay the correct amount.” The law makes no distinction between entertainers and ordinary civilians, and if you work, they will do an evaluation. People who are gainfully working are required by law to pay their taxes. And if they file their tax forms, they will be able to determine how much they owe.
If a taxpayer is dissatisfied with the assessment, the right course of action is to go to court. He or she has every right to file a tax appeal. Many of these actors live their lives on Instagram, Facebook, and other social media sites, where they flaunt their outfits, automobiles, and travel destinations. These are the methods they use to evaluate.”
More posts about can be found by clicking here.
admin
