The Lagos state government has reportedly sued entertainers Davido and Ayo Makun, better known as AY, for tax evasion.
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.
Davido was said to have claimed that he pays taxes to Osun since he is an indigene of the state while AY said he makes his tax payments to Ondo state.
“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).
