The Digest:
Lagos State Internal Revenue Service Chairman Ayodele Subair has refuted claims that the agency will directly withdraw unpaid taxes from residents’ bank accounts without due process. Speaking on Arise TV, Subair clarified that the “power of substitution” referenced in a recent notice applies only after a prolonged legal process. He explained that defaulters must first exhaust dispute mechanisms, including tribunals and court appeals, which can take over five years, before such enforcement is considered. Subair emphasized the measure targets only recalcitrant taxpayers with established final liabilities, not general account holders.
Key Points:
- The clarification aims to reduce public anxiety and misinformation surrounding tax enforcement in Lagos.
- Legal safeguards ensure taxpayers have multiple opportunities to contest or settle liabilities before enforcement.
- Transparent communication is vital to maintaining compliance and trust in the state’s revenue system.
- The agency’s powers are derived from the Nigeria Tax Administration Act 2025, designed to improve recovery efficiency.
- Understanding the process can encourage voluntary compliance and reduce lengthy disputes.
Sources: Arise TV Interview, LIRS Official Statement
