By Prince Debo Luwaji

These are very hard times, to state the obvious, and hardly the best season to defend the government’s rejuvenated fight against tax evasion or tax avoidance within the context of any person or corporate entity’s attempt to sidestep the responsibility statutorily imposed on them by law.

On one hand is the pervading socio-economic difficulties that have   practically dragged everyone into the   ‘we are barely surviving’ net. These days we are all forced to readjust our priorities in the face of quadrupled cost of living, loss of jobs, harsh business climate and dwindling returns among other causes of prevailing widespread lamentation.

On the other hand, however, is the need for those we have entrusted with power to creatively source for ways and means not just to keep their administration running but more significantly,     to undertake capital projects in line with glaring need to stem infrastructural decay, promote healthier living, construct better road networks, make commuting a less hazardous experience, promote ease of doing business, among other benefits for the larger public.

Truth be told, deploying limited budget to sufficiently cover increasing expenditures   is never an easy task. As it is with individuals and organisations, so it is with any government in power. While astute management of funds will always make a difference between any two administrations, yet none can perform a significant magic outside the resources available to it.   

It is in the light of this inextricable nexus between revenue and performance that we must see the recently reignited campaign of LASG against what it considers the general practise of   companies engaging in Non remittance of the Pay-As-You-earn (PAYE) deductions.

  This unwholesome practice, according to Mr. Abdul-Kabir Opeyemi   Ogungbo, the Special Adviser to the Governor on Taxation and Revenue, has a twin disadvantage of not only denying the government a much needed resource but also shortchanged the hapless tax payer who still could not derive the intended satisfaction behind fulfilling his or her tax obligations. 

In its campaign directed at sensitizing private employees on tracking their PAYE, the government through the office of the SA, Mr. Abdul-Kabir Ogungbo   seem to be taking the right step by engaging in a broad, state-wide engagements of private employees to educate them on how to verify that whatever deductions were made from their salaries have been duly remitted on their behalf.

Indeed, to my mind, no genuine tax payer should be caught on the wrong foot here.   For instance, there have been occasions in the past when those who seek to enjoy government’s free or highly subsidized social services like health, housing and education have had to show evidences of their tax compliance one way or another. It would be a shame and a travesty if someone whose monthly pay had been consistently deducted on account of PAYE   has no such proof to tender when required,   thereby getting himself or his close relations sidelined on a matter he is eminently entitled. 

To avoid this, the State Government emphasized the availability of an electronic tax platform for self-service ( https://etax.lirs.net). This platform allows employees and taxpayers to validate their data and obtain electronic tax clearance conveniently from the comfort of their homes or business locations.

Few of us would still remember how cumbersome it used to be to have receipts issued to authenticate our payment.   Such lapses of the past seems to have now been taken care of by the LASG reinvigorated tax system which is fully technology driven. Immediate issuance of receipts and ability to check payment history online and in real-time builds and strengthens the confidence of taxpayers. 

I do believe that all these invariably contribute to the integrity and efficiency of the tax system, 

It is not so difficult to see how tax compliance, tough as it may seem, offers a win-win scenario for both sides of the divide: the government and the people. 

Apart from avoiding penalties, I submit that there are several other advantages of PAYE tax remittance notifications, including: compliance and data accuracy, proper financial planning, building trust as well as meeting legal obligations.

Interestingly, as regards PAYE specifically, there are employers who sentimentally exclude some of their qualified staff from paying tax. Yet the books are clear on this.   Ultimately, they may be called upon to   bear those seemingly ‘long forgotten’   liabilities in the course of time. 

Finally, our current challenges are real. But while we shall keep hoping that the efforts of those at the various levels of our governance begin to yield good dividends quickly, to ease our pains,   what is required of   us is our collective support.   Whether at the federal or state level, we should strive to know and to do whatever are our own obligations.

Timely remittance and correct compliance of our tax obligations are the support our government needs from everyone. In exchange we sure can expect to see more of the Blue Line, Red Line, bridges and other infrastructural investments we see in Lagos especially. 

Luwaji, a public affairs analyst and entrepreneur writes from Lagos.