As we all know, the Federal Government and even some State Governments (Lagos inclusive) do not take tax matters with levity. Listed below are some points to note if you run a business and have been avoiding taxes or you have an account for your business through which tax verification can be made.
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- If you have registered a limited liability company with the Corporate Affairs Commission and you have opened a bank account and you are using the account for personal transactions, you run the risk of having tax issues with the FIRS.
- When FIRS discovers the account, they will ask you to account for the money. They will ask you for different kinds of accounts. Financial, management etc. You will be expected to show your VAT payments as well.
- If you claim you don’t do any business with the company, they will not believe you because there are transactions in the company account.
- So I advise you, if you have a company registered and you do not use it, do not open a bank account yet or if you do, do not transact with it. Transact personal matters with just your personal accounts. That’s way, you only have PAYE to worry about with your state government.
- If you want a Business by force, why not start with a business name? You can have your corporate bank account but you will not have any business with FIRS. Just your state IRS.
- Very soon, because of BVN, all corporate accounts will be traced back to you and you will have to account for it. Do not transact personal business with your corporate accounts.An uncle wants to send you 1m to buy a car. Do not receive it with corporate account.
- Receive it with your personal account. You want to start that small business? Register a business name and not a limited liability company. Save yourself from avoidable tax issues in the future!
