THE Oyo State government has cautioned business owners and residents against evading taxes, warning that legal action could be taken against anyone who violates the law.
The executive chairman of the state board of internal revenue, Olufemi Awakan, in a statement on Friday, November 22 in Ibadan, said payment of taxes and levies was not optional as contained in section 24 of the constitution.
He said, “Every citizen who earns income on its trade, business, profession, vocation, or employment must pay the correct amount of taxes.
“Payment of taxes is not a punishment by the government on her citizens but a compulsory obligation by all citizens to the government.
“Tax obligations are governed by several laws, primarily the Federal Inland Revenue Act, Personal Income Tax Act (2011), and various state tax laws which must be obeyed.
He also highlighted that serious cases of tax evasion could lead to criminal charges, with possible penalties of imprisonment, fines, or both, depending on the offence’s severity.
“Businesses that neglect their tax obligations may face difficulties in renewing licenses or permits necessary for operation. Tax authorities can take legal action to recover unpaid taxes, which may involve court proceedings,” he said .
Awakan maintained that non-compliance with tax laws could harm a business’s reputation, affecting relationships with clients, customers, and partners. He urged citizens to fulfil their tax obligations promptly.
The ICIR reports that Awakan had earlier pledged to recover all internal revenue owed to the state, emphasising that, “There will be no room for tax evasion, as we will work closely with the FIRS and the joint tax board to collect all due revenues.”
While reminding residents that there are penalties for tax defaulters and that the government is actively working to establish more tax tribunals, he said: “We will collaborate with these tribunals to ensure compliance and accountability.”
Nurudeen Akewushola is an investigative reporter and fact-checker with The ICIR. He believes courageous in-depth investigative reporting is the key to social justice, accountability and good governance in society. You can reach him via nyahaya@icirnigeria.org and @NurudeenAkewus1 on Twitter.