Nigeria: Alleged Tax Evasion - Iyabo Ojo Tackles Lagos Govt

"Since you guys insist, You can gladly come and close down my business, arrest me, jail me, or kill me for all I care, we all will die one day, and I will never be afraid of what will eventually be everyone's faith".

Nollywood actress Iyabo Ojo is at loggerheads with the Lagos State government for allegedly defaulting in paying her income Tax.

A personal income tax is levied on an individual's wages, salaries, and other types of income. In Nigeria, it is guided by the Personal Income Tax Act 2011 and is charged on the payment of individuals, families, bodies of individuals, and trustees.

Section 1 of the Act provides that the tax is an obligation paid to the State Inland Revenue Service where the individual resides.

The actress drew the public's attention on Monday to a letter she received from the Lagos State Internal Revenue Service(LIRS) accusing her of evading taxes to the tune of N18m.

According to the letter, based on a review of her returns and in line with Section 54 of the Personal Income Tax Act, she has assessed a tax liability of N7,376,000.00.

In addition to an outstanding liability of N11,264,092.00 for the 2021 income year, she has been urged to pay a total sum of N18,640,092.00 to government coffers within seven days of receipt of this letter.

"Failure to comply with the above directives, this office would, in addition to the tax due, impose penalty and interest as provided for in Sections 76 & 77 of the referenced Act," the letter from the body reads.

But it appears hers is not an isolated case as the Lagos State government filed a 12-count charge against social media celebrity Ehizogie Ogbebor, C.E.O Sayaveth Interiors, on Monday, for alleged failure to pay tax returns.

Through A. I. Alli, its prosecution counsel, the state said the defendant, also an Instagram celebrity, had refused to pay personal income tax to the state's internal revenue service from 2014 till date.

According to Mr Alli, the defendant is a taxable personality but has evaded tax.

Proof

The actress has, however, denied owing the Lagos State government any form of tax, insisting that her tax records are up to date.

In a deleted post on her Instagram page, Ojo called out the Lagos State Governor, Jide Sanwo-Olu, for levelling "outrageous personal income taxes" on her.

She further questioned determining Personal Incom Taxes, which she insists is outrageous.

"I have worked, and I'm still working tirelessly to survive in this country without the government's support, yet you just sit in your office and come up with different outrageous bills. Nothing works right in this country, yet you must take from where you have not sworn.

"Since you guys insist, You can gladly come and close down my business, arrest me, jail me, or kill me for all I care, we all will die one day, and I will never be afraid of what will eventually be everyone's faith... what I do not have I can not give. I have no FEAR," she wrote.

Ojo later held an Instagram live session where she paraded documents to prove she was faithful with her taxes.

Repeat offender

It is not the first time the actress will be at the centre of a tax evasion accusation.

In 2019, the LIRS slammed her with an outstanding tax liability of over N37 million for the 2014-2017 income years.

The agency noted that the default payment is mainly due to her refusal to file her income returns resulting in the outstanding liability.

In that instance, the mother-of-three said she might have to close her business down as she needs to figure out where to start negotiating with the Lagos State government.

She responded, "I'm still struggling with making a profit; after paying rent, salaries, maintenance, electricity, and local & state govt taxes in different categories & levies, I hardly make any profit.

"My fellow Nigerians, I have been asked to pay almost N38m for my income tax to Lagos State... Personal income bawo? I was still struggling with my small business in Ikeja like I'm still even doing now, or is it from my acting that we are poorly paid or from where now?"

Witchhunt?

In addition to her claims, the actress and filmmaker has accused the Lagos State Government of a witch hunt.

Recall that during the last electioneering period, Ojo campaigned and voted for Peter Obi, the flagbearer of the Labour Party.

Her decision to support the LP candidate pitted her against some of her colleagues, who accused her of ingratitude, having been a beneficiary of some of the All Progressives Congress' stalwarts in Lagos.

In another post, Ojo reaffirmed her stand, noting that she will not succumb to intimidation.

"I stand & re stan obediently on my beliefs. I can never be pressured or shaken. I will never bow down to tribal bigots. I want a better Nigeria, and I don't care whose ego gets bruised. We can not all believe in the same thing. I see no tribe. I only see my country, and I'm a Nigerian.

"I am not afraid of death, for that is inevitable. I will never be afraid to air my opinion, which is right. I have no enemies; we may not all believe in the same course or see things the same way, but you're not my enemy because, either good or bad.. we're in it together. We're all citizens of Nigeria," she wrote.

Some, however, are quick to point out that her run-ins with the Lagos State government over taxation date back to 2019, even before Mr Obi joined the Labour Party.

Reactions

While some say that Ojo's tax issues started long before the elections, others think the taxation arm should be stretched to other entertainers, irrespective of party affiliations.

This Iyabo Ojo Tax issue, seems she's made Peter Obi her candidate since 2019 and that's why they're after her paying that huge tax since 2019🤣🤣🤣 pic.twitter.com/mUFk2twrMq-- Taiwo_Ajakaye (@dmightyangel) June 6, 2023

Our problem in Naija is letter B; Buhari, Bobrisky, Boko haram, BBN, Blessing CEO, Bet Naija, and finally Bola Tinubu So these guys are haunting Iyabo Ojo because she supported Peter Obi? Nawa oh!Confirmed| Eniola Badmus| Toyin Abraham| Even Tinubu| El-Rufai| Toyin Abraham|... pic.twitter.com/tDmxqUlePe-- Alákòwé (@alakowee) June 5, 2023

Before Iyabo ojo pays a kobo, the whole of lagos must see what seyi law and Toyin Abraham pays in tax.-- iDAN (@DangbanaManager) June 5, 2023

Still don't get this Iyabo Ojo Tax issue o...This N36 million Tax Lien was August 2019, why is it now blowing up in June 2023 or are they different conversation? pic.twitter.com/XdmyML4azZ-- Taiwo_Ajakaye (@dmightyangel) June 6, 2023

You claimed that the "yeye" dress you wore to the African Magic viewers awards night cost N37.5. Now, Lagos state internal revenue is slamming you with N18 million tax and you are crying wolf. Iyabo Ojo, go and pay or negotiate a downward review. pic.twitter.com/n5tYCDVeMV-- Toyosi WellBeing Couture ✂️🧵 (@toyosky4real) June 5, 2023

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