The Lagos State governor, Babatunde Raji Fashola SAN, seems intent on complicating the (even at best of times) fractious relationship between landlords and tenants in the state. After signing into law the Tenancy Law which restricts the payment or rent to one year in advance, proposing that landlords may be asked to account for the criminal activities of their tenant, he has now told tenants to deduct withholding tax from the rents they pay their landlords. Speaking at the 5th Lagos State Taxation Stakeholders Conference last month, the Governor said “Everybody who pays rents for example, is collecting agents for withholding tax. And it is five per cent.
Everybody who pays money to a doctor, lawyer for the services they rendered to him, is our collecting agent for that withholding tax. And we expect that they fairly collect, issue receipt and account for them” the Governor told the conference that his Government will be very aggressive in the collection of withholding tax as from January 2012.
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