The Oyo State Government on Wednesday sealed the Ibadan Electricity Distribution Company (IBEDC) offices in Ibadan over non-payment of over 400 million Naira tax.
POLITICS NIGERIA reports that tax evasion in Nigeria is punishable under Section 40 of Federal Inland Revenue Service Act.
Evasion of tax is one of the problems plaguing the economic growth and development in Nigeria. It involves intentional misrepresentation of one’s true financial status to the tax authorities so as to reduce his/her tax liability.
When organizations avoid and evade tax, the country becomes cash strapped and restrained from carrying out what is expected of it for the benefits of its citizens.Then the need to borrow huge sums of money from other big nations to provide amenities amongst other things will arise.
The continuous generation of low revenue hinders the country from being able to pay back her debts and the consequences fall back on the poor who depend on the government for everything.