Tax evasion is a criminal offense that can land you in prison, and ignorance of the law won't save you. Small businesses under 100 million in annual turnover are exempt from corporate income tax but must collect and remit VAT. You calculate and file your own taxes through self-assessment, with annual returns required.
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Are there provisions in the law that can make a free person become incarcerated and people don't know about? Yeah, they can take a person to jail now.
Yeah, there was one I came in contact with, um, I found out that, okay, this person was into contracts and this person was not using a company account to collect money. So which means the person is evading tax, evasion of tax. Is a crime. Hold on.
Yes, I know that our tax laws are now serious. So you're saying that if you don't pay tax, it's a crime?
Yes, it is, because that's how the state is supposed to run. The state does not actually have money of its own.
Will the government deduct the tax, or you have to remove it yourself and take it to the government?
So you're supposed to remit yourself, and at the end of the year, you are supposed to file annual returns. As a person, you do self-assessments. At the end of that financial year.
So as individuals who worked hard for their money, they're supposed to remove the part of the government for the government?
Yes, because that's how society is supposed to be run.
How many percent?
Well, it depends on the tax that we are talking about. No, there's a tax table.
So you're saying that the government can wake up tomorrow and ask for people's tax returns?
Yes, because you are supposed to pay. An ignorance of the law is not an excuse.
What about those who say that they are not seeing what the government are doing with the money?
Well, um, it's a concern that's very legitimate.
Yes, but what you're saying still as a lawyer is the fact that for the fact that those things are not available does not give the citizen right.
No, because laws are made, you know, to, um, for a level of safety. Yes, I mean, to control the society and so on and so forth. Yes.
So let's, let's look at the case now. This is an average business owner.
—okay—
who makes, um, net profit monthly, let's say, a million. This small business. Okay, how much is Femi Lazarus supposed to pay as tax?
With the new tax law, any company that their annual gross turnover is, um, less than 100 million, they are small companies. Yes. So they are not paying company income tax and all of those things, but they have to, you know, make sure they are collecting VAT on behalf of government and remitting same. VAT. Yes, value-added tax.
Yes, yes. So you are supposed to withdraw your own money and then take to the bank and deposit in the government's account.
VAT is not supposed to be your money for a, for a small company, really. You are collecting from government and you are remitting it for government. You're collecting on behalf of people and remitting same back to the government.
So basically everyone is a tax collector.
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