Tackling Tax Evasion in Lagos: Inland Revenue’s Enforcement Strategies.

5 Steps to Avoid the Facilitation of Tax Evasion


Tax evasion is a significant challenge that undermines government revenue, hampers economic growth, and compromises the integrity of the tax system. In Lagos, Nigeria, the Lagos Inland Revenue Service (LIRS) is committed to addressing tax evasion through robust enforcement strategies. This article explores the LIRS’s approach to tackling tax evasion, shedding light on the enforcement measures, technologies, and collaborations that contribute to a fair and transparent tax environment in Lagos.

The Cost of Tax Evasion:

Tax evasion deprives governments of essential revenue needed for public services, infrastructure development, and socioeconomic programs. It also creates an unfair advantage for non-compliant businesses and individuals, eroding public trust in the tax system and hindering the overall economic progress of a nation.

LIRS’s Enforcement Strategies:

  1. Data Analytics: The LIRS employs advanced data analytics to identify irregularities, anomalies, and potential cases of tax evasion. By analyzing large datasets, the agency can target high-risk areas and individuals.
  2. Risk Profiling: The LIRS uses risk profiling to assess taxpayers’ compliance behaviors, focusing enforcement efforts on those more likely to engage in tax evasion.
  3. Collaboration: The LIRS collaborates with other government agencies, financial institutions, and international bodies to share information and strengthen enforcement measures.
  4. Whistleblower Programs: Whistleblower programs encourage individuals to report tax evasion anonymously, providing valuable leads for investigation.
  5. Education and Awareness: The LIRS conducts public awareness campaigns to educate taxpayers about their obligations and the consequences of tax evasion.
  6. Stiff Penalties: Non-compliant taxpayers face severe penalties, including fines, asset seizures, and potential criminal charges.

Benefits of Strong Enforcement:

  1. Fairness: Robust enforcement ensures that all taxpayers contribute their fair share, creating a level playing field for businesses and individuals.
  2. Government Revenue: Effective enforcement measures boost government revenue, which can be reinvested in public services and development projects.
  3. Deterrence: The threat of stiff penalties and legal consequences deters individuals and businesses from engaging in tax evasion.
  4. Public Trust: Transparent enforcement measures enhance public trust in the tax system, fostering a sense of collective responsibility.
  5. Economic Growth: Increased government revenue resulting from effective enforcement supports economic growth and sustainable development.


The Lagos Inland Revenue Service’s commitment to tackling tax evasion demonstrates its dedication to fostering a transparent, equitable, and accountable tax environment in Lagos. By employing data analytics, risk profiling, collaboration, and awareness campaigns, the LIRS strengthens enforcement measures and sends a clear message that tax evasion will not be tolerated. As the LIRS continues its efforts to address tax evasion, the collaboration between tax authorities, businesses, and individuals paves the way for a fair and prosperous economic landscape in Lagos, Nigeria.

For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com . You can also reach us via WhatsApp at +2348038460036.