The Oyo State Government has issued a stern warning to business owners and residents, urging them to settle their tax obligations to avoid severe penalties, including imprisonment, fines, or asset seizure.
The government emphasized the importance of clearing any backlogs of tax payments and fulfilling civic responsibilities.
Olufemi Awakan, the Executive Chairman of the Oyo State Board of Internal Revenue, highlighted that paying taxes is a constitutional duty under Section 24 of the Federal Republic of Nigeria’s Constitution.
He stated that all citizens earning income from trade, business, profession, or employment must pay the correct amount of taxes.
Awakan clarified that taxes are not punitive but a compulsory obligation for all citizens to support the government. He referenced various tax laws, including the Federal Inland Revenue Act and the Personal Income Tax Act, which govern tax obligations in the country.
Awakan stated the punishment saying, “Serious cases of tax evasion can lead to criminal charges. Convictions may result in imprisonment, fines, or both, depending on the severity of the offense. The tax authorities have the power to assess and determine the tax owed if an individual or business does not file returns or pay taxes.
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“This can lead to additional penalties like fines and interest. The government can seize assets or bank accounts of individuals or businesses that fail to comply with tax obligations. 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.
“Non-compliance with tax laws can lead to reputational harm, affecting relationships with clients, customers, and business partners,” he added.
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