The Lagos State Government has begun moves to tackle high-profile tax defaulters in the state and ensure high level of compliance with its tax laws.
As part of this initiative, the state government has moved against some celebrities in the state, who are alleged to be tax evaders despite their earnings from their business. A court paper, on Saturday, indicated that the state government had dragged sensational singer, David Adedeji Adeleke, popularly known as Davido, before the court for alleged tax evasion.A reliable source in the government, also noted that the state had equally moved against popular comedian, Ayo Makun, better known as AY, for allegedly failing to pay tax. Both artistes 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. Davido had defended his action, claiming that he paid taxes to Osun State since he is an indigene of the state. 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.
The source added, “Remember that Davido said he made N500m from his N30bn concert recently. We must know how much he paid to the LIRS. 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.