CROSS RIVER, CALABAR – A senior tax official, Dr. Patience Egwu, has warned individuals and businesses against paying taxes into private accounts, stressing that all payments must go through officially designated government channels.
Dr. Egwu issued the warning while addressing journalists during a press conference held at the NUJ Centre in Calabar, where she outlined key reforms in the country’s tax administration system.
She explained that the government remains committed to strengthening transparency and accountability in tax collection while protecting businesses and individuals from fraudulent tax collectors.
According to her, many complaints received by tax authorities stem from situations where individuals were asked to pay levies through unofficial channels.
Dr. Egwu stated that such practices undermine government revenue and create confusion among taxpayers trying to comply with the law.
She said, “Nobody is authorized to open a private account to collect taxes on behalf of government.”
“All payments must go directly into approved government accounts.”
Investors Continue to Explore Digital Assets
Speaking further, Dr. Egwu noted that digital assets and cryptocurrency platforms are becoming increasingly important in the modern economy.
She explained that many investors are now engaging in digital financial activities and generating income through cryptocurrency transactions.
According to her, these emerging financial platforms have created new forms of wealth that must be properly captured within the country’s tax framework.
She told journalists that the government recognizes the growing role of technology-driven investment in the economy.Dr. Egwu said, “There are people who invest here and spend their money here.”
They participate actively in the digital economy and they are happy to do business within that space.”
She added that the government is studying the sector closely to ensure that income generated through digital platforms complies with existing tax regulations.
According to her, the growth of cryptocurrency transactions has also introduced new asset categories into the country’s financial ecosystem.
She explained that individuals who receive income through such digital platforms must understand their tax obligations.
Clarification on Sale of Personal Assets
Dr. Egwu also clarified widespread misconceptions surrounding taxation of personal property.
She explained that individuals who sell their personal belongings are generally not required to pay taxes on such transactions.
However, she noted that the situation changes when the asset being sold is connected to business activities or income generation.
The tax expert explained that the law distinguishes between personal property and business assets.
She stated, “If someone sells personal belongings, that transaction does not automatically attract tax.
But if the asset is used in a business that generates income, then tax obligations may apply.”
Dr. Egwu said many taxpayers often confuse the two categories, leading to misunderstandings about tax responsibilities.
She noted that equipment, tools or property used in business operations fall under taxable transactions when they are sold.
According to her, the tax framework aims to protect private citizens while ensuring that commercial activities contribute fairly to government revenue.
Presumptive Tax System for Informal Sector
Dr. Egwu also explained the government’s use of the presumptive tax system, which targets businesses operating within the informal sector.
She said the system helps authorities assess taxes for small-scale operators who may not maintain formal financial records.
According to her, many traders, artisans and small businesses fall within this category.
Dr. Egwu noted that calculating exact income for such businesses can be difficult due to the absence of structured accounting systems.
She explained that presumptive taxation allows authorities to estimate tax based on the nature and size of a business.
“Presumptive tax is mainly designed for people in the informal sector because many of them cannot accurately present detailed income records,” she said.
She emphasized that the system ensures fairness while encouraging small businesses to participate in the country’s tax structure.
Dr. Egwu added that the approach also broadens the government’s revenue base without placing excessive burdens on small entrepreneurs.
Collaboration With Local Governments
The senior tax official further disclosed that discussions are ongoing between tax authorities and local government officials to improve coordination in tax administration.
She acknowledged that businesses sometimes face multiple tax demands from different agencies, which can create confusion and frustration.
Dr. Egwu said efforts are underway to streamline the process and ensure that taxpayers deal with clearly defined authorities.
During the press briefing, she revealed that some companies had already approached the tax office to resolve disputes related to tax payments.
According to her, one company recently requested engagement with local government authorities before further discussions with the Internal Revenue Service.
“They informed us that they would like to meet with the local government chairman first before returning to us so that the issue can be resolved properly,” she explained.
She noted that such consultations are necessary for maintaining cooperation between different tiers of government.
Arrests for Tax Violations
Dr. Egwu also confirmed that enforcement operations have led to the arrest of several individuals suspected of violating tax laws.
She said the arrests were part of ongoing efforts to discourage tax evasion and illegal tax collection practices.
According to her, authorities will continue to take firm action against individuals who deliberately refuse to comply with tax regulations.
“In some instances, people have already been arrested because they failed to comply with the law,” she said.
She stressed that enforcement remains a critical component of tax administration.
Dr. Egwu explained that the government is determined to protect legitimate taxpayers while holding offenders accountable.
Importance of Documentation
The tax official also advised taxpayers to maintain proper documentation for all payments made to government agencies.
She said keeping accurate records helps individuals verify compliance and resolve disputes when they arise.
Dr. Egwu urged taxpayers to always demand official receipts whenever they make payments.
She explained that proper documentation protects citizens from being asked to pay the same levy repeatedly.
“Records are essential because they provide proof that a payment has been made,” she told journalists.
According to her, taxpayers should keep copies of receipts and other relevant documents for future reference.
Call for Public Cooperation
Dr. Egwu concluded the press conference by calling on businesses, traders and individuals to support ongoing tax reforms.
She emphasized that taxation remains a critical tool for funding infrastructure, public services and national development.
According to her, government reforms are aimed at building a transparent and efficient tax system that supports economic growth.
She urged members of the public to report illegal tax collectors and comply with legitimate tax regulations.
“Once everyone follows the proper process, the system will work better for both government and citizens,” Egwu said.
She thanked journalists for their attendance and encouraged continued public awareness on issues related to taxation and compliance.
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