Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oloyede, has clarified the distinction between gifts and taxable income.
He highlighted that individuals providing services, including sex work, are required to pay tax on their earnings.
In a recent interview shared on X on Monday, Oloyede explained that money given as a gift or upkeep to relatives, friends, or even strangers is not taxable because it is not exchanged for services.
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“If the amount you’re sending to someone is money you are giving to them…it’s not because they have done something for you. Yeah, so it’s a gift…you give someone because it is something for you, then that’s not taxable,” he said.
However, Oloyede emphasised that income earned from providing services is subject to taxation, regardless of the nature or legality of the service.
Using a controversial example to illustrate his point, he noted, “If somebody is doing runs girls, right, they go and look for men to sleep with…that’s a service, they will pay tax on it. One thing about the tax law is it does not separate between whether what you are doing is legitimate or not…it just asks you whether you have an income. Did you get it from renting a service or providing a good, you pay tax.”
Oloyede concluded by reiterating that gifts or upkeep given to anyone remain tax-free, but income from services must be declared and taxed accordingly.
