By Chinwendu Obienyi
As Nigeria continues to grapple with the harsh multi-billion dollar effects of tax evasion by both individuals and businesses, it is evident that financial literacy is one of the most salient solutions to the growing list of tax problems in the country.
The defunct Skye Bank boss and founder, DLK Advisory, Timothy Oguntayo, stated this in a chat with Daily Sun over the weekend.
Oguntayo believes that Nigerians can totally avoid encountering tax problems if they embrace financial advisory.
He said: “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, relying on effective financial advisory is one way to help you avoid falling into those thinking traps”.
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 being able to invest more. There are several ways that tax planning can even help save you 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.
He added that the government needs to enhance its sensitization efforts to help the grassroots access financial advisory at low cost.
“They can partner with more financial advisory firms to make this happen. They are already doing a lot. But to solve this problem, we need to pull in all our weight.”
With over 35 years of experience in the banking and finance sector, Oguntayo has cut his teeth in the professional financial advisory scene.