Is Laycon's winning subject to tax?

In the last few days, there has been a debate as to whether Layon’s winning should be subject to tax. A lot of individuals said No because they consider the money won as a gift, but here is what  Taiwo Oyedele has to say; 

 

Lowell Nussbaum must be right when he said:

 

“A fine is a tax for doing something wrong. A tax is a fine for doing something right.”

 

When you're successful, the taxman wants a piece of the cake 🎂

 

 

UPDATE:

 

Is Laycon's winning subject to tax?

 

Yes. Section 3 of the Personal Income Tax Act imposes tax on the income of every taxable person from a source inside or outside Nigeria including trade, business, profession, vocation, salaries, allowances, benefits, rent, pension, interest, dividend, and any profit, gain or other payment except specifically exempted.

 

The tax rate is graduated up to 24%. However, the top effective tax rate after adjustment for tax free income is about 19%.

 

The tax is payable to the state where the taxpayer is resident. Residency has a technical meaning so it's not just where you live and not necessarily your state of origin.

 

This is not an advice to Laycon, I am sure he can afford a professional advice. This is for general information and in response to many people asking if the winning is taxable.

 

What do you think? Is Laycon's winning subject to tax?

First of all, the state whereby Laycon spends at least 183 days in a year will be the state of residence and for tax payment.

Secondly, his Laycon's wins a taxable income or not? Some think that his wins are a gift and shouldn't be subjected to PIT since gifts are not outrightly included in PIT. I personally think his wins is a taxable income because there was a contractual agreement although unconventional, and he put in some works to get the wins hereby creating an employer-employee engagement.