It is no news that most Nigerians don’t pay their taxes, and almost 80% of Nigerians who run Small-Medium Enterprises (SME) avoid tax officials like a plague and this can be attributed to different factors which could include but not limited to the following:
1) Lack of Patriotism
2) Lack of Tax education
3) Confusion as to which tax to pay
4) Disorder in Taxation system
5) Lack of trust for the government or the tax officials due to corrupt practices.
6) Multiple and unlawful taxation.
Whatever the reason may be, Tax payment evasion is an offence and is punishable under the Nigerian law. The law governing taxation in Nigeria gives power to the tax collectors/officials to seize/auction off the goods and even seal the premises of defaulting taxpayers to recover monies owed. As a business/company owner whether big or small; whose aim is to grow and expand your business, it would interest you to know that most contracts in recent times are awarded with the condition that you and your business/company are tax compliant. As a matter of fact, evidence of taxes paid for your company as well as personal income tax, are requested to be presented before an approval of contracts.
There are different types of taxes to be paid, therefore no two business/company or individual is obligated to pay the same amount as tax. The income of an individual and the profit made by a company determines the amount that would be paid as tax by the individual or company.
There are also different government bodies who calculate the taxes to be paid, are responsible for the collection of the different types of taxes and the method of collection.
Stop giving excuses as to why you can’t or shouldn’t pay your Tax, unless your aim as a business or company owner is to remain small forever, but bear in mind that the Law has a Long arm and will most definitely catch up with you and all your years of sacrifice to build your business would have been for nothing.