Davido and AY have been charged before a Lagos High Court for tax evasion and both may risk jail terms if convicted. AY has had a longer history in court against the state as he was charged to court in 2016 for failing to file his tax returns as required by law.
A source disclosed to reporters that the duo have been avoiding the tax agencies for a while, despite repeated letters and calls to them to remit their income taxes.
“Notable among these alleged tax offenders are two of Nigeria’s celebrated artistes –Davido and AY, the comedian. Both artistes have had a long standing battle with the Lagos Internal Revenue Service for tax evasion.
“Davido, who has record deals with Sony Music Entertainment and endorsement agreements with various companies in Nigeria, has not filed his tax returns or remit any taxes to the Lagos State Government,” the source said.
Davido has however countered the claim saying he is not defaulting in his tax remittance as he pays his tax to the Osun State being an indigene of the state.
The source added,
“Remember that Davido said he made N500m from his N30bn concert recently. We must know how much he paid to the LIRS.
“AY too said the same thing. The comedian claimed to be paying his taxes to Ondo State, where he hails from. It seems these celebrities don’t understand that the tax law stipulates that you must pay your tax to your state of residence.
“Anyway, we are already in court. Others will soon appear in court if they don’t obey the state tax law. You can’t be making money in Lagos and refuse to pay tax.”
Asa Asika, Davido’s manager was contacted to confirm the authenticity of the suit against Davido by the Lagos State Government. He is however yet to respond as at the time of filing this report.