Taiwo Oyedele, a tax expert, has said that the new cash withdrawal policy introduced by the Central Bank of Nigeria (CBN) would expose tax dodgers.
Oyedele, who is the West Africa tax leader for PricewaterhouseCoopers, stated this in a string of tweets on Wednesday.
According to him, the new policy would impact individuals, and Micro, Small, and Medium Enterprises (MSMEs). He explained that through withdrawals, authorities would be able to detect tax evaders.
“As many people will be forced to carry out transactions using electronic payments, small businesses that currently operate mostly on cash will become visible to the tax authorities,” he said.
For businesses registered as a company, Oyedele said it would become mandatory for such to pay the statutory Company Income Tax, depending on their annual turnover.
“If your business is not registered as a company then you will be liable to personal income tax based on graduated taxable income bands between 7% and 24%,” he said.
TheCornet reports that the CBN on Tuesday restricted cash withdrawal for individuals N100,000 from the initial from N500,000 threshold.
For corporate organisations, the policy slashes withdrawal limit to N500,000 from N3 million, according to the guideline.
The Bank also directed that individuals would not be able to withdraw more than N20,000 daily.