Somto

This post made me realize that many of you don't even know what presumptive tax means. Permit me to educate you. First of all by law, everyone is required to file taxes by the 31st of March 2027. That's approximately 2 months after the election, in case you haven't noticed. Whether you are employed or unemployed, NRS no send your papa. You must file. What happens if you don't file? The Nigeria Tax Administration Act provides for: - ₦100,000 administrative penalty in the first month of failure. - ₦50,000 for each subsequent month the failure continues. So what is Presumptive tax? Presumptive tax establish a simplified tax framework for individuals and informal sector businesses whose income cannot be reliably calculated due to a lack of accounting records. Now Imagine being a POS operator in Nigeria. Your personal bank account records ₦100 MILLION in transactions in one year. Then the taxman comes asking questions. You are not a big businessman. You operate a POS stand, help people withdraw and transfer money, and earn commissions on transactions. But because you use your personal bank account to run the business, ₦100 million has passed through that account in a year. But if you cannot produce proper records showing what you earned, the tax authority may assess your business using the presumptive tax rules. Here is where things get serious. Under the 2026 regulations, qualifying businesses whose income cannot be reliably determined may face a presumptive tax of 1% of actual or estimated turnover or revenue. If the tax authority lawfully determines that your taxable turnover was ₦100 million, 1% would be ₦1 million in tax. For those that file taxes, if NRS looks at what you paid for taxes and decides it's too small, the law gives the tax authority to make an additional assessment if it determines that you were assessed below the amount properly payable. They can use presumptive tax to bill you more. So they will send you additional amount to pay based on their own assessment. If the tax debt becomes due and remains unpaid, the law also empowers the relevant tax authority, under specified conditions, to take that money from your bank, or from your business partner or your supplier or anyone that is doing business with you. The scariest part is that they can do this without first obtaining a Court order. Now ask yourself have you received clear, practical education on these rules before enforcement begins? Government wants compliance, but compliance requires understandable rules, fair assessments, accessible filing and a genuine opportunity to challenge mistakes. People should not have to discover their tax obligations through a penalty notice. Elections have consequences. You go vote abi you no go vote?