I've always been a tax-payer since I started working years ago. Its was easy, due to the fact that my office simply deducts my taxes, and pay them to the government. But I've been thinking about starting a business with my wife, and I started doing research on everything and anything. And I took my research on that amount of tax we're to pay. I found out that annually, I've got to pay 30% of my profit. But in taxation, its not simply the way your accountant gives out your final accounts that you get taxed, There are laws in paying government tax on what is taxable and what is not.

For example, if you buy something new into the business, like a laptop or car or something, you can't deduct the money from your turnover or sales, because the money you use to purchase those items are taxable, but if you spent money repairing an existing item, its tax exempt.

Studying the whole thing made me queasy about paying taxes.

Now this question came to me, something a speaker once asked in a public forum: would the average Nigerian, or rather, would you be willing to pay taxes, as long as the Government provides the basic amenities? That is, if you know that you can get water, electricity, bla bla constantly, would you be willing to pay your taxes without being prompted by the Government?

And also, even if the Government provides these things or not, would it affect your choices in paying your taxes (keeping in mind that the taxes you pay are supposed to play a major part in the provision of these amenities)?

I really need honest feedbacks, Not necessarily exemplary ones.

of course id pay taxes if government will use it to provide basic amenities,however reverse is the case in this nation.it beats me these days why the lagos state government is raising dust about taxes, i really wonder why because i know many people pay their taxes and thers no amenities to show for it and the government wants to start arresting some other people for not wanting to dash away hard gotten wealth ,too annoying when ever i hear the tax adverts.

I was fascinated with this tax stuff. I'm an officer in one of the paramilitaries in Nigeria. What puzzles me in this tax of a thing is knowing what is taxable and what is not. Is it proper to add up someone's basic salary and allowances together before deducting the tax? Another question is this, amount of money paid as tax, does it vary from state to state despite the fact we are federal establishment? What I've noticed is that some of our colleagues in the same rank and level with us but in different states collect different salary all because of this tax issue.

You are right,

cescky:

of course id pay taxes if government will use it to provide basic amenities,however reverse is the case in this nation.it beats me these days why the lagos state government is raising dust about taxes, i really wonder why because i know many people pay their taxes and thers no amenities to show for it and the government wants to start arresting some other people for not wanting to dash away hard gotten wealth ,too annoying when ever i hear the tax adverts.

If government will use it to provide basic amenities then let them open up because is very odd that the Nigerian government have not realize their past mistakes.

The purpose of taxation is to have money to provide and maintain infrastructures. Hence every right thinking person would not oppose paying taxes. However, if you knew that your tax money would not be used judiciously,then paying tax would not be attractive to one.

White Halo:

Now this question came to me, something a speaker once asked in a public forum: would the average Nigerian, or rather, would you be willing to pay taxes, as long as the Government provides the basic amenities? That is, if you know that you can get water, electricity, bla bla constantly, would you be willing to pay your taxes without being prompted by the Government?

Yes. I suppose with the provision of basic amenities: good roads, shelter, good health services, electricity, water, good schools, and overall good environment, any sane person would realize it's a responsibility and be willing to pay tax.

White Halo:


And also, even if the Government provides these things or not, would it affect your choices in paying your taxes (keeping in mind that the taxes you pay are supposed to play a major part in the provision of these amenities)?

In the event that these are not provided, I would not be willing to pay any tax knowing fully well that the monies paid will be going into some peoples pockets.

If u evade tax you would go to Jail

Ask Wesley Snipes!

U can run for years but one day go be one day!!

Do ypu mean pay taxes in Nigeria or other countries? It is necessary to pay taxes but the Nigerian government uses tax money to get ready for hybernation rather than develop the country like well minded people else where do.

@Poster, I would suggest you go get information from the tax office down there.

I would be very happy the day Nigerians starts paying tax properly and the Government use this tax to provide basic amenities like water,electricity,health etc.

Lets wait and see,

Wesley snipes didnt evade tax, he wanted tax refunds amounting to 7.4 million dollars or so, because he claims his income is exempted from taxes as he claimed it was a "non taxable source".

All i can say about Nigerians that think they are exempted from taxes because the economy is in decay, is you are the architect of Nigerians decay, you contribute to the problem we are having today.

dee02:

If u evade tax you would go to Jail

Ask Wesley Snipes!

You can run for years but one day go be one day!!

Go to jail, where? We're talking about Nigeria and the average Nigerian here.

On the one hand,most Nigerians pay tax BY FORCE ala PAYE,DUTIES etc.I know a lot of people on paid employment would NEVER have paid a dime in tax if they were paid their complete salaries (tax inclusive)and asked to remit the taxes on their own volition
This is why the case of company tax,sales tax etc is a different ball game,where individuals and companies shy away from paying taxes,while the ones that agree to pay will in most cases under-assess themselves.
Now with the advent of multiple taxation in Lagos,the whole thing has become a burden and too confusing for even the ones that hitherto would perform their civic duty.

On the other hand,how encouraging is it for people to pay tax and then helplessly watch their elected(?) govt representatives loot,squander or mismanage such monies without any attendant penalties

The only thing certain is death and taxes (In the U.S anyway).
dont know how business owners in nigeria remit taxes. is there even a way to keep track for business owners?

Pay your tax oooooooooooo.

Even, it is written in the Bible (As you pay Tax, pay ur Tithe also.)

Well, GennyO, the only thing I know is that the State Tax Board taxes states, and the Federal Inland Revenue Board taxes Federal citizens (those in Abuja or in Federal Establishments). I always thought the amounts were the same, at least i believed so as its the same tax laws that empowers them, Unless maybe some state gives tax reliefs to their citizens to motivate them. That's another thing that I'd like to look into, meaning it might be more profitable to set up a biz in one state, as opposed to another.

But I do advise paying tax, Jesus did say it.


Just have to fight the temptation against under-assessment

left to me if tax laws were so serious in Nigeria, then most politicians no go dey steal to buy cars and build more houses because they knw they would be taxed on such stuffs, but trust Nigeria now,
anything goes.

this is interesting, I was thinking about this issue. well it would be great if people were forced to pay taxes ONLY if the job of providing basic amenities are provided. tax is needed to provide a functional economy. I am not too sure how the taxation process actually takes place in Nigeria but I feel like businesses should report their profit and be taxed accordingly. If they fail to report then consequences should ensue.

This Tax question again.
Firstly, we should know we already pay tax, EACH and EVERYONE of us, to the government. Consider that each time Yara & his co Looters-in-Power (LiPs) collect royalties, duties, other payments from oil companies and VAT on OUR behalf we are already paying tax. We could as well go directly, EACH one of us and ask the oil companies to pay us individually these amounts instead of asking the Federal Government to collect and then redistribute to us through our State & Local governments through their monthly Revenue Allocations, although this is impractical.
Mostly because they are contented with these allocations most State and Local governments no longer stress the personal income tax for individuals and other corporate entities. It is enough for them to chop and invite others to come & chop. Moreover if they stress you & I on paying our other taxes, then we will start asking questions as we are doing right now on this forum, in this thread. So they play safe and fool us into thinking we don't pay them, thus we are their MUNGUNS.
Remember that no Yara (doer or dull), Fashola, Amaechi, Saraki, Obi, Nyako etc can collect any kobo except they claim to have the mandate of the 140m (?) people they supposedly REPRESENT. Shell won't pay Yara if he just shows up in their offices simply as Yara.
So normally you should pay your tax as it is a legal requirement and you could go to jail but moreover so you have an ADDITIONAL basis for requesting and obtaining QUALITY common services and infrastructure from your government.
However, even if you do not pay tax for LEGITIMATE reasons, e.g. you are unemployed, a student, a child etc, government still OWES you the provision of these services and infrastructure because they are already collecting your TAXES (or its equivalent) from big corporations on YOUR BEHALF.

the problem is not paying taxes it is the use of the monies collected. Monies collected only from oil taxes should not be enough to run the WHOLE country of Nigeria. To be honest we can not continue to wait on the government to make changes, I believe that this is something that we have to do ourselves. It seems as if when companies are privatized things seem to improve ( communication-phone). I believe maybe if those overseas can contribute ideas and resources ( not necessarily money) to a group or fund, seriously wanting to improve the conditions of Nigeria it may be of some help. Or a groups of individuals willing to make a change may initiate a proposal which will get things rolling, something may actually happen. I am just looking for a way to alleviate the problem at hand something MUST be done or Nigerians will continue to suffer.

I don't give a shit if the money is used well or not. It's a duty for every patriotic citizen to pay taxes to his country. No matter the misuse, some useful cash does filter down from the taxes.


You pack of traitors should stop giving whiny excuses for not doing your civic duty.

Yes pay taxes. But when in Naija---hmmmmmmmmmmm---if I know say my money dey go towards all the basic amenities I have absolutely no qualms whatsoever paying my taxes but it's going to funding the enlarged, thieving purses of wolves that call themselves politicians. Very few (and I mean VERY) use the allocated money for what it was allocated and in a sensible manner. Sha infrastructures where women have taken over have shown great improvement -- see waterboard or even Okonjo-Iweala in the small time she was there cleared out our debt with the Paris Club. Be honest, regardless of what some think now, did you honestly believe that debt was ever going to go away? I know I didn't. I'm glad of her few years. I think with more women in power and privatization of infrastructures with national security and responsibility in mind, we will surely start seeing more changes. When I left I had no hope whatsoever for Naija, but I'm seeing more and more improvement every day. With God, with time, with the right dedication, planning and people, we will make it.

texazzpete:

I don't give a shit if the money is used well or not. It's a duty for every patriotic citizen to pay taxes to his country. No matter the misuse, some useful cash does filter down from the taxes.


You pack of traitors should stop giving whiny excuses for not doing your civic duty.

such passion towards taxes! That's hot!

spoilt:

such passion towards taxes! That's hot!

lol. My taxes are deducted before i even see my cash. But even if it wasn't that way, there's no reason not to pay.

The same attitude towards tax is what is crippling our amenities now. NEPA once said that only about half of lagos consumers pay their power bills.

@ tp, PHCN is the lousiest analogy for paying taxes you can get.

that organisation(in lagos in particular) is riddled with corrupt technicians, enginners, mnagers, from top to bottom. we pay our bills ( which are estimated not calculated - ) and e get a maximum of 48 hours of electricity in a month. any problem we have - we have to settle nepa technicains to work on it. its always this thing is not in the store. . .

as the electrical engineer in my close, people have attemptd to press gang me into being a liason with PHCN, but i will have nothing to do with it - having i intimate knowledge of the facts that i am being ripped off and can do nothing about it is bad for the digestion.

oga - we need to by 50mm high tension cable to repair this thing -the cable cost n200,000
whats the lenght?
don't worry
25mm cable can carry it
no only 50mm can carry it
i will buy the cable myself
no it must be from us

anyhow, enough ranting. like you my tax is deducted from source. but my stand on tax is different - the government has done nothing good with its oil revenue, do you really think it will do any better with taxes?

if i meet a person in need, and i am capable of providing finacial support, i will first try to confirm what the person has achieved with the resources already available. there is no point in giving aid to a person who will misuse it. thats a pure waste of money that could have been used for better things. i've gone into this before - my old man was in the middle east for 10 years, and he provided all sorts of support to several of his siblings. one had one of those small neighbourhood store type things. the moment my old man came home and the cash flow stopped the business collapsed. if one totals the money he gave her, it comes to some very big figures. the implication is that all that money was wasted.

this is slightly offtopic, but for me, the issue is do not give money to irresponsible people. the nigerian government is as irresponsible as they came. there is nothing to show for oil boom ; there is nothing to show for all the tax that is deducted from my salary, if they were to double everyone's tax there still woulsd be nothing to show. i practically provide my own light, my own water - God dey for security- those men in black whose salary i'm paying still demand 'something'.

if i had kept all that money i would have done a lot more with it than my government

anyhow. this topic seem to be a hot button with you - so let me stop my rant.

there are two major reasons for me not making any effort to pay tax;
1. we do not have record here in nigeria - as in computerized system for all records.
2. we have more than enough resources to take care of nigerians and their needs and even when i pay, there will not be light, roads, security etc so no need.

if tomoroow, i need something from gov, i will just go for a three(3) tax clearence and that solves the problem so why worry.

please u guys shd stop paying tax till they sign agreement with us that they will provide us with our needs.

to all those who are not/don't want to pay taxes,

since most of you say government is wasting it, how do you want the same governement to function without taxes. it seems we cannot understand that even the oil revenue is our collective tax paid directly to government instead of us individually.
what we should be reasoning out is how to make government WORK for us. If you can't or won't pay tax THEN you should opt out of Nigeria and set up your own country of you, yourself & yours ONLY.
We need to make this polical leaders and government employees provide services to us since they are paid for it with our individual taxes or what they collect directly from oil sources.
Make we shine our eyes now abeg.

It's an open secret that an average Nigerian don't pay a dime in tax from year to year. Even their so called millionaires or Billionaires pays what can be called an average tax as against PAYE. Only those that work for government will beat their chest in Nigeria to say that they pay their due tax correctly annually because it wasn't their choice as it's deducted from their wages.

In the private sector, it's all about free for all, pay only when you are caught by rogue tax collectors, who would even prefer it that you don't pay at all, so that, they will have an excuse to get the money inside their own pocket as bribe.  I had said it for years that Nigerian relaxed attitude to tax laid the very foundation of stealing of public fund by those in authority.

If Nigerians are to pay through their nose in tax, they will react differently on seeing a corrupt official exhibiting their illgotten wealth.  They will now realise that that new SUVs he/she is crusing about is masses sweats, paid through taxes and will likely take corruption seriously.  But because of the usual easy crude oil money had blinded many Nigerians that, all these corruption by politician is all about stealing from them, therefore they no longer think that it's their money.

A serious and computerized tax system will curtail showing off of one's wealth in Nigeria. People will now know that the bigger the car you drive the bigger your tax, the bigger the house you live the bigger the amount of tax you pay, big businesses and big taxes too. People will no longer boast how rich they are. When you spray money in public, the next day, the tax man will like to look at your income and sources of it.

A serious tax system will awoke many slumbering Nigerians to take notice of their collective wealth that are being stolen or siphoned to foreign banks on a daily basis in their very eyes. That is why you hadly hear any Nigeria official using such phrase as "Tax payers money" when they are talking about public funds.

@ Eziachi, I just couldn't agree with u more. If the majority of Nigerians truly did file and pay taxes on their HARD earned income, corruption wouldn't be as much as it is because no one would like for someone else to steal their hard end money. There would be serious accountability and you better believe that.

I would like to know how the accountability would be enforced, cos right now companies pay taxes so are their employees that's what internal revenue office was created for. Take local governments for an example, all the fines and dues they collect what do they do with them?. We eventually have to come up with a system cos sooner or later when the oil reserves run low we have to have a way to live as a nation.

My brother it is a good thing to pay tax apart from being a civic resposibility as a good citizen to pay your tax. Our govt at the centre is not interested in taxation as a vital source of income because oil money dey yanfu yanfu and Nigerian have no moral right to question them, that is, what they are doing with oil money because it is a God given no sweat, unlike tax income which is from oniru and oniyo stuff and that is one of the reason why we are not developed. That is why you can see a country spending close to $16bn on electricity and yet we are still buying petrol and diesel to power "I better pass my neigbour" generator every night at a cost of between N500 to N1,000 which we should have been used for Tax payments.

Some of these developed countries earn 90% of their income from taxation including Norway who is an oil producing country like Nigeria but which is not cursed by its oil. We can see them developed rapidly and there is what is called "accountability and morality" on the part of their leaders because every of their citizens have contributed their own share through tax and therefore, they have moral right to question their leaders as to where and what are they doing with their money.

I pray one day our govt we begin to issue cheques to all of us from part of proceed of oil money and keep the rest as tax may be the situation will change then.

I salute the efforts of Lagos State on the their tax drive and I pray they will suceed, let us encourage them through this we can have moral right to ask them at the the begining of the year what they do with the one collected last year, then they will be able to give account and this we reduce waste and corruption.

paying taxes in which country?