Oyo Government Issues Stern Warning to Entrepreneurs: Evade Taxes and Face Jail Time

In a strong warning against tax evasion, the Oyo state government has emphasised that it will take legal action against anybody who fail to comply.

Olufemi Awakan, the Executive Chairman of the Oyo State Board of Internal Revenue, declared that the government is committed to ensuring tax compliance and resolving tax backlogs.

Citing Section 24 of the Nigerian Constitution, Awakan stated that all corporations and individuals who produce revenue are required to pay taxes and levies.

He emphasised that people who make money through trade, commerce, profession, or job must pay the right taxes to the government, characterising tax payment as a mandatory obligation.

He said: “Serious cases of tax evasion can lead to criminal charges. Convictions may result in imprisonment, fines, or both, depending on the severity of the offense. The tax authorities have the power to assess and determine the tax owed if an individual or business does not file returns or pay taxes.

“This can lead to additional penalties like fines and interest. The government can seize assets or bank accounts of individuals or businesses that fail to comply with tax obligations. Businesses that neglect their tax obligations may face difficulties in renewing licenses or permits necessary for operation. Tax authorities can take legal action to recover unpaid taxes, which may involve court proceedings.

“Non-compliance with tax laws can lead to reputational harm, affecting relationships with clients, customers, and business partners.”