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3 Years Jail Sentence For Obi Cubana If Convicted By EFCC

See what Adenikan from Michaelmas Chambers has to say about Tax Evasion

Tax Evasion

This is the deliberate refusal to pay tax or the underpayment of tax. Tax evasion has been interpreted to mean an illegal practice where a person, organisation or corporation deliberately evades paying their authentic tax liability. Tax evasion can alternatively be defined as a wilful practice of not declaring full taxable income in order to pay tax at a reduced rate. It is an intentional violation of tax laws and is evident in instances where tax liability is fraudulently reduced. This is one of the problems plaguing the economic growth and development in Nigeria.

Tax evasion involves intentional misrepresentation of one’s true financial status to the tax authorities so as to reduce his/her tax liability. Examples of tax evasion includes;

(a) False declaration of income, profits or gains actually earned.
(b) Deductions one is entitled to.
c) Failure to render tax returns to the Relevant Tax Authority.

This was the case in Independent Television/Radio v. E.S.B.I.R where the defaulter failed to render tax returns to the relevant tax authority. The Court held inter alia that,

“In this instant case, the tax being scuffled over was the tax of the appellant’s employees from 2005-2010 which would have long time been deducted from the employees’ salaries but which the appellant failed to remit to the appropriate authority. This is a despicable way for any tax payer to act and it is seriously detrimental to the development of any nation.”

The court in the above case referred to the case of Phoenix Motors Ltd v. N.P.F.M.B. It can be inferred from the above judgment that tax evasion, irrespective of how undeserving a country is to one’s tax. It is a despicable practice condemned by the judiciary and any rightful thinking person. A tax evader may be charged to court for evading tax. It is a criminal offence and one can be fined or imprisoned. Tax Evasion in Nigeria, is punishable under Section 40 of Federal Inland Revenue Service Act.

In addition to this, it is also a criminal offence under Section 41 of the Act to hinder or assault any authorised tax officer in the performance of his duties. Anyone found guilty of this can be liable to a fine or three years imprisonment or both.

If successfully convicted by the court with the help of efcc Obi Cubana might face 3 years in prison and pay a fine or both according to Section 40 of Federal Inland Revenue Service Act in the Nigerian 1999 Constitution.

So guys this is a really serious shit for obi. He needs a good SAN.

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