Pay your taxes or spend 5 years in jail - Federal Government tells Nigerian entertainers

Pay your taxes or spend 5 years in jail - Federal Government tells Nigerian entertainers

        

- Many have wondered if some Nigerian celebrities pay taxes considering the way they flaunt their wealth

- This lavish lifestyle of celebs may soon be a thing of the past

- That is if the federal government follows through on its plan to start taxing entertainers and other high net worth individuals

There has been clamor by some Nigerians for the federal government to appropriately tax celebrities who often show off their luxurious lifestyles. It appears this group of Nigerians may soon have their wish.

Apparently, the federal government has finalized plans to punish entertainers who refuse to pay taxes after the nine-month grace period set out by the recently launched voluntary asset and income declaration scheme (VAIDS).

Various sources report that for 15 months, the FG working with various agencies and departments including those in the private sector has been gathering information on tax compliance of many celebrities and several high net worth individuals in the country.

The government has also reviewed ownership of exotic cars, yachts, private jets, land ownership and other luxurious properties to understand the earnings and assets of many of these celebs, The Cable reports.

Following the discovery of massive discrepancies in the way entertainers pay tax, the government launched VAIDS, a scheme that allows these celebrities and other Nigerians to declare their assets and income, and pay necessary taxes without interest, penalty or investigation. The scheme, which will run for nine months, is a grace period for the celebrities to make amends of face the full wrath of the law, which could include jail term of up to five years.

For celebrities with houses in exotic locations worth millions of Naira, and a tax record not consistent with the value of the property, the government advises that such celebrities “complete form VA1” and clarify sources of income for the house and pay necessary taxes within July 1, 2017 and March 31, 2018.

A statement released by the FG states that celebrities who do not take advantage of the scheme risk “up to five-year imprisonment, get severe extra penalties: up to 100% of the outstanding tax due, a compound interest at 21% per annum, and forfeiture of such assets.”