Lagos State Government has reportedly sued Sensational 30 Billion gang singer; Davido Adeleke and millionaire comedian AY for tax evasion. To ensure high-level of compliance with tax laws, especially by some celebrities who earn high-income but evade tax.
According to PUNCH, both celebrities have had a long-running battle with the Lagos Internal Revenue Service (LIRS) over alleged tax evasion.
Davido was reportedly charged before a Lagos high court in July 2017 and risks a jail term if convicted while AY was said to have been charged to court in 2016 for failing to file his tax returns.
In response, Davido said he pays tax to Osun State which is his state of origin and AY Comedian also said he pays tax to Ondo state since that’s where he’s from.
“Remember that Davido said he made N500m from his N30bn concert recently. We must know how much he paid to the LIRS,” the report quoted a source as saying.
“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.”
The Federal Inland Revenue Service (FIRS) in collaboration with the federal ministry of finance has been working to increase tax compliance with programmes like the Voluntary Assets and Income Declaration Scheme (VAIDS).