On the backdrop of billions of Naira lost annually by the government to tax evasion and avoidance, a financial expert, Mr. Timothy Oguntayo, has indicated that proper financial advisory and tax planning are necessary tools to combat the growing list of tax problems in the country.
Oguntayo, who was the former Chief Executive Officer at Skye Bank and founder, DLK Advisory, stated this in a chat with newsmen in Lagos, saying that businesses that evade taxes are disillusioned by the idea of losing money through tax payment.
He stated: “Just like every other expenditure, tax is something you must plan for. It is vital to business health. Most businesses that evade tax are disillusioned by the idea that they are losing money. Hence, with proper tax planning strategies, you can comfortably pay your tax without having to feel like you made a loss.
“Even as a Small and Medium-scale Enterprise (SME), relying on effective financial advisory is one way to help you avoid falling into those thinking traps,” he added.
He, therefore, advised the government to enhance its sensitization efforts to help people at the grassroots access financial advisory at a low cost.
Citing the recent pronouncement by the Federal Inland Revenue Services (FIRS) regarding the need for businesses to obtain a Certificate of Acceptance in respect of their capital expenditures, Oguntayo explained that many businesses are making investments in capital assets but are not aware of the tax benefits that they stand to benefit.
“If they have business advisers, he/she will be able to point them in the right direction on this and other areas, thereby minimizing their tax obligations and increase their ability to invest more. There are several ways tax planning can even help you save money.
However, the fashion designer or the furniture maker on your street might believe otherwise. Proper tax planning even helps you to accumulate wealth and make better investment decisions. This is why you need a financial advisor,” he said.