Press Releases

We Will Enforce All Laws Relating To Tax Compliance - Fashola

Apr 17, 2008 - Lagos State Governor, Mr. Babatunde Fashola (SAN), Thursday reiterated his administration’s determination to enforce all laws as they relate to tax compliance in the state, saying tax remained the master key to sustainable development of any nation.

Fashola, who spoke at a one-day meeting with professional bodies in the State, also expressed his administration’s resolve that transacting business with governments at all levels in the State would, henceforth, be contingent on the presentation of evidence of tax payment for the past three years.

Addressing the professional bodies on “The Matter of Tax Compliance”, Fashola said the government expects every taxable individual and organization in the state to have paid his tax for the previous year by March of every year, adding that criminal sanctions which had been largely ignored in the past, would, henceforth be revived with vigour.

The Governor also said it was not in the interest of any tax payer to evade the obligation because, “apart from exposure to the risk of prosecution, taxes unpaid when they are due will be a heavy burden carried over to the following year since we no longer waive interests and penalties stipulated by law”.

Urging the professional bodies to lead by example, Fashola said, as employers of labour, the onus was more on them to remit the taxes deducted from their employees monthly to Government pointing out that failure to do that would amount to criminal negligence.

“No professional should be in good standing when he is in default of tax. After all, once apprehended and prosecuted for tax evasion, such a person can only bring his profession under disrepute”, the Governor said.

Explaining the need for all to pay tax when due in the state, the Governor, who outlined the various projects currently being undertaken by his administration under the 10 – Point Agenda of the State Government, declared, “You will agree with me that these programmes require huge funding, the primary source of which is taxation. Only when you and I make our little contribution can the government have the critical quantity to do what it has to do for the welfare of the people”.

He said Lagos has outgrown what it gets from petroleum resources and other Federal Allocations adding, “There is, therefore, no alternative to taxation especially since Government cannot do business as a means of survival”

Expressing his administration’s commitment to assisting the professional bodies in remitting their taxes with ease, Fashola said the Government has put in place an efficient and effective mechanism for tax collection but added that Government was still ready to accept suggestions from the professional bodies which could make the process of tax collection more efficient and effective.

Apparently appealing to their conscience and morality, Fashola reminded the professionals that it is not only the children of the elite and professionals that want to be lawyers, doctors and engineers but children from all strata of the society, adding, “I think what they must be able to pick from us is a culture of tax compliance”.

“As a Government, we have presented to the people our programme. For now, it is unanimously accepted that these are necessary things to do. We have also found that taxation is the Master Key to the funding of these programmes”, the Governor said.

The seminar was organized by the Lagos Inland Revenue Service (LIRS) and drew participants from all professional sectors of the economy like lawyers, engineers, doctors, entrepreneurs and actors to buy into the policy of tax compliance of the State.