Lagos State sues Davido, AY and others for tax evasion

The Lagos State Government has moved against tax evaders in the state and a court paper, sighted by SUNDAY PUNCH, indicated that the state government had dragged singer, Davido, before the court for alleged tax evasion.

According to the The PUNCH, a reliable source in government, said that the state had equally moved against popular comedian, Ayo Makun, better known as AY, for allegedly failing to pay tax.

Davido, the Chief Executive Officer of HKN Music, Lagos, has been charged before a Lagos High Court in July 2017 and risk a jail term if convicted.

AY has had a longer history in court against the state as he was charged to court in 2016 for failing to file his tax returns as required by law.

Notable among these alleged tax offenders are two of Nigeria’s celebrated artistes –Davido and AY, the comedian. Both artistes have had a long standing battle with the Lagos Internal Revenue Service for tax evasion.

 

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Davido, who has record deals with Sony Music Entertainment and endorsement agreements with various companies in Nigeria, has not filed his tax returns or remit any taxes to the Lagos State Government,” the source said.

A reliable government source told SUNDAY PUNCH on Saturday that Davido had defended his action, claiming that he paid taxes to Osun State since he is an indigene of the state.

Davido is said to have told LIRS officials that he pays his taxes to Osun state government since he is an indigene of the state while AY said he makes his tax payments to Ondo state. An official of the Lagos state government who spoke on the matter said;

Remember that Davido said he made N500m from his N30bn concert recently. We must know how much he paid to the LIRS. AY too said the same thing. The comedian claimed to be paying his taxes to Ondo State, where he hails from. It seems these celebrities don’t understand that the tax law stipulates that you must pay your tax to your state of residence. Anyway, we are already in court. Others will soon appear in court if they don’t obey the state tax law. You can’t be making money in Lagos and refuse to pay tax.”