The Lagos State Government has focused its attention on high-profile tax defaulters in the state with the aim to ensure a high level of compliance with its tax laws.
This is just as the state government has reportedly sued entertainers Davido and Ayo Makun, better known as AY, for tax evasion, as the duo are accused of evading tax despite high earnings from their business.
A court paper, seen by The Punch on Saturday, indicated that the state government had dragged the duo before the court for alleged tax evasion.
The news outlet disclosed that while Davido was charged before a Lagos high court in July 2017 and may risk a jail term if convicted AY was also charged to court in 2016 for failing to file his tax returns.
“Notable among these alleged tax offenders are two of Nigeria’s celebrated artistes –Davido and AY, the comedian. Both artists have had a long-standing battle with the Lagos Internal Revenue Service for tax evasion.
“Davido, who has record deals with Sony Music Entertainment and endorsement agreements with various companies in Nigeria, has not filed his tax returns or remit any taxes to the Lagos State Government,” a top source in the government said.
The source continued: “Remember that Davido said he made N500m from his N30bn concert recently. We must know how much he paid to the LIRS.”
“AY too said the same thing. The comedian claimed to be paying his taxes to Ondo State, where he hails from. It seems these celebrities don’t understand that the tax law stipulates that you must pay your tax to your state of residence.”
“Anyway, we are already in court. Others will soon appear in court if they don’t obey the state tax law. You can’t be making money in Lagos and refuse to pay tax.”