Consequently, without tax revenue, governments will be starved of funds and will not be able to carry out various projects they are associated with. As a matter of fact, without tax revenue, most governments will become bankrupt, with consequences such as failure of governance. The Oyo State government’s action should therefore be taken as an enforcement of the laws. The attitude of the corporate tax defaulters purely signifies lack of good corporate governance, which must not be allowed to contaminate other institutions. After the shut-down approach as an effective weapon against tax default, Oyo State may decide to go further to prosecute the companies and their officials for tax offences.

Source: The Guardian September 27, 2018 03:45 UTC