Five years ago, Tade, Teni and Tayo left their home town, Ipetu-Ijesha in Osun state to Lagos state in search of greener pastures. After settling in the Akoka area in Yaba Lagos, the three decided to start up a petty trade to make ends meet.


Tade was able to acquire a bus on hire which he uses as a commuter bus taking people to and fro the Yaba environ. He also joined the National Union of Road Transport Workers (NURTW), Yaba chapter two years ago. He has however not been an active member of the union, and a constant defaulter of the union dues. In 2015, tax officials from the Lagos Internal Revenue Service (LIRS) approached the NURTW, Yaba chapter with the view to begin the assessment of its members. Self-assessment forms were provided to the union to ease the payment of taxes by their members. However, Tade has over the years blatantly refused to collect the self-assessment forms and to adhere to the payment as he opines that the government has not been responsible and does not deserve his tax quota.


Teni on the other hand, was able to acquire a shop in Yaba market which she uses as a provision store selling all sorts of beverages, food items, toiletries and drinks. She also sells recharge cards in her shop. Over the years, Teni’s small business has flourished, with a fifty percent increment in her profit base since her business started. At several occasions since 2015, the tax awareness team of the Lagos Internal Revenue Service (LIRS) has approached Teni for the purpose of assessing her to determine her tax liability. Teni has however refused to acquire a self assessment form for the purpose of paying income tax and has also refused to pay VAT on her goods. On a particular day, she shouted at and kicked the tax officials out of her shop for demanding self-assessment forms from her.


In 2013, Tayo got a job at Exxon Mobil Ltd, a company involved in refining of crude oil. In 2015, he got promoted to the office of the Chief Financial Officer of the company responsible for keeping all companies records and making all payments due. Few months after assuming office, the company received a notice from Federal Inland Revenue Service about their default in filing adequate tax return under Petroleum Profit Tax Act (PPTA) and Companies Income Tax Act (CITA) respectively. Due to the dissatisfaction with the audited accounts and returns filed by the company, the Board assessed the company to a taxable profit of 1.5 million naira as opposed to the 1million naira which the company declared. The company however filed a response to the petition of the Board containing the following;  That it is not subject to tax under the PPTA as it is not a petroleum company, thus not liable to pay tax, and That the company has not erred in its declaration of 1 million naira as profit for the purpose of assessing tax.


Flowing from the above issues, the LIRS and FIRS have approached you as a tax consultant and practitioner to address them and proffer solution to the issue of tax compliance by Nigerians as manifest in Tade, Teni and Tayo’s case.

In addressing tax compliance, you are to identify the issues arising in the facts and address them, proffering solutions to them in accordance with the relevant statutes.



Kindly share your intellectual view on this pls.

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