Regarding tax matters, the Lagos State Government has reaffirmed that the Lagos State Internal Revenue Service has the best judgment.
This was alluded to by Abdulkabir Ogungbo, Special Adviser to the Governor on Tax and Revenue, after TikTok celebrity Habeeb Hamzat, also known as Peller, bemoaned a fictitious N36 million tax bill that he said he received from Lagos State.
Last week, the young online streamer and content creator criticized the state government for what he called exorbitant taxes.
The 20-year-old TikToker disclosed that the government had requested N36 million in income tax from him in a widely shared video taken during a livestream with artist Tobechukwu Okoh, also known as Peruzzi.
The task panel recommended that I pay N36 million in taxes. I swear to Allah Ta’ala that I have nothing. It was only last year that I became well-known. How much tax do you, Peruzzi, even have to pay? Why should I spend N36 million? What does that even mean? Since the government has never provided me with anything—not even TikTok support, much less assistance from a task force member—why will it want money from me? Peller moaned.
In a chat with our correspondent on Tuesday, Ogungbo stated that he will examine the circumstances behind Peller’s problem later and get back to us, but he also pointed out that anyone making a legal living in the state is required to pay taxes.
“I must examine this specific circumstance in question. However, in general, the LIRS is an independent organization tasked with evaluating and rendering the best decision on behalf of the government. We may need to engage the LIRS as an office to know about this particular case. However, in the context of personal income, Section 24 of the Nigerian Constitution states that anybody who earns a living legally must honestly report it to the authorities. Therefore, we can go back after thoroughly examining the context around the size, the quantum, and other factors,” the SA stated.
The SA clarified that there are new reforms governing digital assets and virtual transactions when asked about taxation for content providers.
Naturally, the law permits personal income tax, which means that you are required to pay taxes if you make a living or receive any money from your lawful activities, Ogungbo stated. In light of this, you should send your taxes to the LIRS, the authorized authority, regardless of where you are—physically or virtually. However, the current regulations address that from the perspective of digital assets and their related professions, which primarily discuss this virtual transaction. However, you must pay taxes in any case when it comes to personal income tax.
He added, “So it’s about the legitimacy of your residence, where you stay. When you stay here, we assume that your infrastructure usage and otherwise, you earn it. You can be here and be having online business, so for that reason, if you earn honestly here, and there is no proof that you pay the same tax to another jurisdiction, for instance, maybe you’re based outside the country, you have to prove to the authority here that you were paying to the other state or other national. But if your income, which you earn here virtually or online and you stay here, and you want to do something with the Lagos State Government, then you’re bound to remit your tax here.
