TAX EVASION

The ongoing investigation by the special enforcement unit of the Federal Inland Revenue service on the allegation of N6.8BN tax evasion leveled against chief Jimoh Ibrahim remind me of Vaswani brothers that were deported by Nigerian government during President Olusegun Obasanjo’s tenure for tax evasion.

If chief Ibrahim is found guilty where will he be deported to, Ondo State where he hail from? LOL

Allingham & Sandimo ,1972 said the desire to uplift one’s society is the first desire of every patriotic citizen. If this is true then tax payment is a demonstration of such desire.

Tax payment is a civic duty and an imposed contribution by the government on their subjects and companies to enable her finance or run public utilities and perform other social responsibilities.

The major source of income in developed countries like the United Kingdom and United State is by payment of tax due to citizens and organizations.

Tax evasion is the illegal evasion of taxes by individuals, corporations and trusts. it often entails taxpayers deliberately misrepresenting the true state of affairs of their tax liabilities and dishonest tax reporting such declaring less income, profit or gain other than the amount actually earned or over stated deduction.

Tax evasion and avoidance are problems that face every tax system, the Nigerian situation seem unique when viewed against the scale of corrupt practices prevalent in Nigeria ,the major problem lies in the collection of the taxes especially from the self employed businessmen/women, professional ,traders in their shops among others.

When are you expected to pay tax?

·         As a general rule ,income on a property (rent, hire, lease or payments on rights) situated in Nigeria is liable to tax.

·         Oil producing companies on petroleum companies operations are liable to pay tax.

·         Tax are to be paid on use of patent ,trademark

·         Consultancy/professional management are expected to pay tax

·       Any individual, corporation or organization that consumes, buys , procures or import taxable goods or services is liable to pay tax.

Causes of tax evasion in Nigeria 

The causes of tax evasion and avoidance are universal as they are applicable in any country that tax is imposed.

·   Absence of quid pro quo meaning there’s absence of something of value given in return by the government

·         Inequalities distribution of amenities

·         Misappropriation of collection made by government

·         Remoteness of tax payers from government

·         Absence of spirit of civic responsibility

Tax evasion is a crime and any person found guilty shall be liable for a term of imprisonment. 

Oyenike Alliyu-Adebiyi Llb(hons)Bl