Punch Newspaper reported that the entertainers have had a long-running battle with the Lagos Internal Revenue Service (LIRS) over alleged tax evasion. Davido was reportedly charged before a Lagos high court in July 2017 while AY was said to have been charged to court in 2016 for failing to file his tax returns.
Davido is said to have told LIRS officials that he pays his taxes to Osun state government since he is an indigene of the state while AY said he makes his tax payments to Ondo state. An official of the Lagos state government who spoke on the matter said;
“Remember that Davido said he made N500m from his N30bn concert recently. We must know how much he paid to the LIRS. AY too said the same thing. The comedian claimed to be paying his taxes to Ondo State, where he hails from. It seems these celebrities don’t understand that the tax law stipulates that you must pay your tax to your state of residence. Anyway, we are already in court. Others will soon appear in court if they don’t obey the state tax law. You can’t be making money in Lagos and refuse to pay tax.”