In a significant development, the Federal Inland Revenue Service (FIRS) has announced its intention to enforce tax payments among social media content creators and influencers. This decision stems from the observation that many in this sector are evading tax obligations, posing a significant challenge to revenue collection efforts.
According to Dare Adekambi, Special Adviser on Media to the FIRS chairman, social media content creators constitute a notable portion of tax evaders due to their substantial earnings through digital platforms. Adekambi emphasized the civic obligation of paying taxes, highlighting that even those earning income in foreign currencies must fulfill their tax responsibilities.
The FIRS plans to collaborate with the Corporate Affairs Commission (CAC) to identify and bring social media handlers into the tax net. While acknowledging the challenge of tracking these individuals, the FIRS intends to employ a combination of outreach and enforcement measures to ensure compliance.
Adekambi emphasized the FIRS’s commitment to engaging with content creators and influencers to promote voluntary tax compliance. However, if this approach fails to yield results, the FIRS will resort to enforcement actions. Leveraging data and technology, the FIRS aims to enhance tax revenue collection and ensure a fair contribution from all income earners, including those in the digital space.
This move aligns with international practices where social media content creators and influencers are required to fulfill tax obligations. By extending tax enforcement measures to this sector, the FIRS seeks to bolster revenue generation efforts and foster a culture of tax compliance across all segments of society.
