Oyo State Government Warns Against Tax Evasion, Threatens Legal Action
The Oyo State Government has issued a stern warning to businesses and residents against evading taxes, emphasizing that payment of taxes is a constitutional obligation. The Executive Chairman of the state Board of Internal Revenue, Olufemi Awakan, made this known in a statement released in Ibadan on Friday.
Awakan stressed that under Section 24 of the Nigerian Constitution, every citizen earning income from trade, business, profession, vocation, or employment must pay the appropriate amount of taxes. He clarified that taxation is not a punitive measure but a civic duty essential for the government’s functionality.
“Payment of taxes is not optional. It is a legal and constitutional obligation,” Awakan said. He also cited key tax laws, including the Federal Inland Revenue Act and the amended Personal Income Tax Act of 2011, which mandate compliance.
The chairman highlighted the severe consequences of tax evasion, which can include:
•Criminal Charges: Convictions for serious tax evasion offenses can result in fines, imprisonment, or both.
•Asset Seizure: The government has the authority to confiscate assets or freeze bank accounts to recover unpaid taxes.
•Operational Challenges: Businesses that fail to meet their tax obligations may face difficulties in renewing operational licenses and permits.
•Legal Action: Tax authorities can initiate court proceedings to recover owed taxes.
•Reputational Damage: Non-compliance can harm relationships with clients, customers, and partners.
Awakan advised citizens and businesses to ensure timely and accurate tax payments to avoid penalties, fines, and disruptions to their operations. He emphasized that compliance benefits not only the government but also the citizens, as taxes are essential for infrastructure development and the delivery of public services.
The state government reiterated its commitment to enforcing tax compliance through all legal avenues and urged residents to fulfill their tax obligations promptly to avoid the consequences of non-compliance.
