The truth is no one likes to pay taxes. But taxes are compulsory and lawful. The terms "tax avoidance" and "tax evasion" are often used interchangeably, but they are very different concepts. Basically, tax avoidance is legal, while tax evasion is not. Tax avoidance is a legitimate way of minimizing tax paid while Tax Evasion is illegal way of not paying tax.

Oil Workers and other firms that pay high salary pay huge amount of tax per annum but with the right knowledge about taxation, insurance and pension, taxpayers can beat down their income tax legally.

Tax has many loopholes which I will show you the most profitable one. Due to many orphans, widows and disables in the society, government believes if their breadwinners had taken a insurance, they won’t have been burden to the society. In other to encourage people buying insurance, government made a tax Act that all money pay into insurance should not be tax.

Let me give an illustration, assuming Mr A earns #12Million per annum and pays 20% tax which is #2.4Million per annum, let’s assume he works for 15years, he would have paid #36Million has tax. Compared to Mr B that also earns #12Million per Annum but paid #2Million every year into insurance investment plan, he will be tax on #10Million and not #12Million, he will pay #2Million tax pay year instead of #2.4Million paid by Mr A, assuming he also works for 15years, he will pay #30Million instead of #36Million. Interestingly, Mr B would have avoided #6Million tax within the 15years, makes profit of #13.75Million from Insurance throughout the investment and also has a life insurance cover of #20Million in case of eventualities during this period.

Most people are not aware that Insurance in Nigeria is booming, the worst that can happen to any insurance company is to be to buy up by another insurance company. Aiico Insurance PLC is the leading life insurance company in Nigeria, they are over 56years. They are tested and trusted when it comes life insurance, Investment and tax rebate.

Feel free to contact me for more information on how to reduce tax.

Olaoluwa Ogunsanya
Financial Adviser (Aiico Insurance PLC)
olaoluwaogunsanya@gmail.com
0 7 O 3O 73 9425

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