The Federal Government has announced that all income generated within the country, including earnings by individuals often referred to as ‘runs girls,’ is subject to taxation according to the law.

This message was conveyed by Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during a recent tax education session hosted by the Redeemed Christian Church of God at the City of David in Lagos. The session quickly gained popularity online.

During the discussion, Oyedele clarified that monetary support sent to dependents or family members isn’t considered taxable, classifying such transfers as “non-exchange transactions.”

He said, “You earn a certain amount of money and you have to send upkeep to your cousin, your brother, even a stranger, it doesn’t really matter.

“If the amount you’re sending to someone is money you are giving to them as a gift, that’s not taxable. It is you that should have paid tax before giving them a gift.”

However, he emphasised that once a payment is made for a service or product, taxation is mandatory by law, regardless of the legality of the activity.

He added, “If somebody is doing runs girls, right, they go and look for men to sleep with, you know that’s a service, they will pay tax on it.

“One thing about the tax law is it does not separate between whether what you are doing is legitimate or not. It just asks you whether you have an income.

“Did you get it from rendering a service or providing a good? You pay tax.”

Oyedele, however, encouraged Nigerians to consider the wider context of the new reforms, which he characterised as the most extensive in the country’s history.

He said, “The starting point for me is always to give context. And the first thing, the first message, is a proverbial blind man and an elephant.

“Depending on the side of the elephant that they touched, they concluded what it was, maybe a fan, a wall, or a tree. But none of them got the right answer because they didn’t feel the big picture.”

He suggests that citizens could repeat the same mistake if they concentrate solely on one part of the comprehensive tax reforms.

He added, “One thing I can tell you is that the tax reforms enacted into law a few months ago, that will take effect from January next year, is the most transformative, most significant in our nation’s history.

“With over 200 significant changes and more than 400 pages combined, it is very easy and could be tempting to narrow it down to one issue. That would be making the same mistake as the blind man and the elephant.”

He stated that the reforms would affect individuals, business owners, employees, employers, and civil servants, aiming to simplify the tax system and enhance compliance.

ASA