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Oyo State Government, on Friday, warned business owners domiciled in the state and residents against invading taxes, just as it said it might use legal action against such an individual.
The Executive Chairman of the state Board of Internal Revenue, Olufemi Awakan, who stated this in a statement in Ibadan, the state capital, said payment of taxes and levies was not optional as stated in Section 24 of the Constitution.
He said, “Every citizen who earns income on its trade, business, profession, vocation, or employment must pay the correct amount of taxes.
“Payment of taxes is not a punishment by the government on her citizens but a compulsory obligation by all citizens to the government.
“Tax obligations are governed by several laws, primarily the Federal Inland Revenue Act, Personal Income Tax Act (2011) amended and various state tax laws which must be obeyed.
“Serious cases of tax evasion can lead to criminal charges. Convictions may result in imprisonment, fines, or both, depending on the severity of the offence. 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.
“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.”
Awakan advised that citizens should pay their taxes as and when due promptly.
