Lagos State Government yesterday said it would commence the prosecution of tax defaulters in the state.
Disclosing this at a joint briefing by the state Attorney General and
Commissioner for Justice Mr. Ade Ipeye, Special Adviser to the Governor
on Taxation, Mr. Abimbola Shodipo and the state Executive Chairman
Inland Revenue service, Mr. Tunde Fowler said that of the estimated
eight million residents in Lagos, statistics shows that only three
million pay their taxes. He said that about five million residents do
not pay thus leaving the tax burden on the three million who pay.
According to the state Commissioner for Justice, machinery has been
put in motion to ensure criminal prosecution of these tax defaulters in
the state.
He said that some 300, 000 were found in the last three years through
the traffic offenders’ demand for tax clearance not to have paid any
tax.
He said that some of these tax evaders are being investigated and
that criminal charges will soon be instituted against them. Some, he
said, have been invited to answer for discussion on their outstanding
tax liability.
He said that most of the defaulters are professionals who have the
means to pay their taxes but failed to do so because they feel they have
no need of government.
Officials of the state government said that a formal notice have been
served on residents with tax liability with a caution for them to pay
up what they are owing.
They said that the state was not enacting any new law but was going
to enforce a federal law which empowers each arm of government in the
country to collect stipulated taxes.
According to the state government, in 1999 only 252,000 Lagos
residents were paying tax, but this figure of taxpaying residents rose
to 728,000 in 2005.
From a figure of 728, 000 in 2005, the number of taxpaying residents
grew to 2, 700,000 in 2010 and increased by 300, 000 in 2011.
They said that as at 2012 the figure of taxpaying residents stood at three million.
Officials of the state government said that as at 2010 about 254
companies were owing the state a tax liability of about five billion
naira.
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