Prof. Saka Olokooba of the Department of Business Law, University of Ilorin (Unilorin), has urged the Federal Government to inflict severe punishment, including jail term on tax evaders in Nigeria.
Olokooba made the call in Ilorin on Friday while delivering the 249th Inaugural Lecture of Unilorin, entitled: “Withhold Caesar’s Right and then Cry the Beloved Country”.
He submitted that since tax evasion is the major clog to the workability of the Nigerian tax system, it is imperative for the Nigerian government at this critical period to aggressively address the issue of tax criminality.
According to him, this should be with the same vigour the government fought against the issue of non-performing/bad debt in the financial sectors in 2011.
“Considering all the unquantifiable benefits of prompt tax payment in any economy as well as the likely adverse effects of non-payment, it is our humble submission that, to save this beloved country from crying, tax evasion should attract more severe punishment,” he said.
The don, who teaches in the Faculty of Law of the university, added that the mere imposition of monetary fines on tax defaulters seems not to be as effective as desired.
He asserted that tax defaulters should be made to serve compulsory jail term in addition to monetary fine for any tax offense.
He noted especially, after a repeated offence, it will greatly reduce; if not eliminate the grave criminality in the Nigerian taxation policy.
The expert on Business Law warns that tax evasion is negatively affecting the socio-economic and political development of Nigeria as a nation and a situation security challenges.
He said research has shown that collection of Personal Income Tax in Nigeria have remained one of the most serious clogs in the way of an effective tax system.
“In Nigeria, most self-employed personnel still evade the payment of tax. While some claim ignorance of the necessity for tax payment.
“Some refuse because they claim not to be receiving a commensurate provision of amenities or services from the government despite the payment of tax,” he said.
Olokooba observed that payment of tax has been in existence from time immemorial and that the concept has base in religious ideologies.
“Failure to pay tax in the sight of God is also an offence,” he said.
