Tax Registration | A simple story-line

Tax Education Series - Episode 8

Written by Richard Okunola

Chinedu is a trader who owns a cement distribution business. He is always supplying cement to construction sites. The business thrived well and succeeded in growing into a medium scale, he had more customers and other small business partners. Chinedu was very happy and did not bother to register for tax purpose.

Oftentimes, his friend Bayo, who is a compliant taxpayer and business mogul educated Chinedu on the side effect of not registering for tax, as well as the implication of being caught by the tax authority. Chinedu turned deaf ears, saying "the government just dey chop our tax money, I no need am".

Few months along the line, he got an offer to supply 100,000 bags of cement to a multinational construction company. Of course, he was extremely very happy as this happens to be the moment he has been waiting for all his life. He quickly prepared and submitted the proposal. Guess what?! It was well received.

Few days later, he got a call from the multinational company requesting for his Tax Clearance Certificate (TCC). This happens to be a prerequisite to awarding him the contract. Unfortunately, he was not registered for tax purpose and that was how he lost the opportunity to grow into a bigger business. He went back home depressed.

Is there a need to be tax compliant? Stay tuned for update on how to register your business for tax purpose.

#Tax #TaxInsight #TaxEducation #TaxKnowledge