...But not every naira is taxable
The fear is widespread that if you transfer N500,000 to your mother, will the tax authority automatically tax it? With Nigerian banks now mandated to report monthly high-value transactions of N5 million or more for individuals to the tax authorities, many citizens believe every bank transfer is a taxable event.
Experts have said this belief is false, but the risk of misclassification is very high. The new tax law, through the Tax Identification number, uses bank transaction data
