Emerging reports have it that Nigerian Singer, Davido and Comedian, AY have been slammed with law suit by Lagos State Government for tax evasion.
Both entertainers have had history of legal tussle with Lagos State Government for their failure to remit taxes to the state government treasury.
According to a close source who spoke with reporters, Davido and AY have been avoiding tax agencies for a very long time. All efforts by the State Internal Revenue Service through letters and calls urging them to remit their taxes have been fruitless.
“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.
“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.
In defense of the allegation of tax evasion, Davido has reacted saying he is not defaulting in tax remittance as he pays tax to Osun State Government being his state of origin.
However, the source added that, celebrities are ignorant of tax law as it stipulates that tax must be paid to state of residence.
“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.” the source said.
Asa Asika, Davido’s manager was contacted to confirm the authenticity of the suit against Davido by the Lagos State Government. He is however yet to respond as at the time of filing this report.