The Backstory
In a livestream with singer Peruzzi, Habeeb “Peller” Hamzat—a TikTok content creator—revealed that the Lagos State Internal Revenue Service (LIRS) served him with a ₦36 million personal income tax assessment.
Peller was visibly shocked:
“I don’t have anything. I just came into the limelight last year… Government never gave me anything,” he said.
According to him:
His earnings are from international social media platforms like TikTok, not local events.
He believes the huge tax bill was triggered by his visible lifestyle and public discussion of his earnings.
He has never received official support from the Lagos State government.
During the livestream, Peruzzi told Peller:
“You must pay it… If you don’t, the government will arrest you.”
WHAT THE LAW SAYS
In Nigeria, taxation is a legal obligation, but its application to cross-border income can be complex.
1️⃣ Personal Income Tax Act (PITA), Cap. P8 LFN 2004 (as amended)
Section 2(1): Tax is payable on the income of any individual who is resident in Nigeria, from any source inside or outside Nigeria.
Section 3(1): All income from trade, profession, vocation, or employment is taxable. (This can include influencer and content creation income)
What this means for Peller:
Even if his income is from abroad, as a Nigerian resident, Peller is liable to pay tax on it.
2️⃣ Tax Residency Rule
Under Section 108, PITA, an individual is considered “resident” in Nigeria if they stay in the country for up to 183 days in a year.
It is obvious that Peller meets this threshold, all his global income becomes taxable in Nigeria.
3️⃣ Assessment & Dispute Resolution
If a taxpayer disputes an assessment, Section 58, PITA allows them to file a notice of objection within 30 days.
If unresolved, the matter can be escalated to the Tax Appeal Tribunal (TAT), as provided under the Federal Inland Revenue Service (Establishment) Act, 2007.
Implication:
Peller can legally challenge the ₦36 million demand by showing evidence of actual earnings and allowable deductions.
Therefore, while paying tax is indeed a civic duty, the law also ensures taxpayers have the right to question or appeal an assessment if they believe it’s incorrect.
Here are some Key Takeaways for all Content Creators across Nigeria:
1. Know Your Tax Obligations: If you live in Nigeria, your global income is taxable under PITA.
2. Keep Records: Document all your earnings, whether local or foreign, and allowable expenses.
3. You have the right to Challenge Unfair Assessments: Use your right under Section 58, PITA to object to questionable tax bills.
4. Seek Professional Advice: Tax laws can be quite technical. Therefore, endeavor to consult a tax lawyer or accountant before responding.
Finally, Peller’s outrage may reflect a growing reality in Nigeria; content creators are now squarely in Nigeria’s tax net. But taxation must be fair, transparent, and backed by due process.
The real question is whether Nigeria’s tax system will adapt to the digital economy in a way that’s just for both the state and its fast-rising online stars.
This is a development to surely keep an eye on. Share this to your content creator friends out there, you might be saving a soul from tax debt.
The Backstory
In a livestream with singer Peruzzi, Habeeb “Peller” Hamzat—a TikTok content creator—revealed that the Lagos State Internal Revenue Service (LIRS) served him with a ₦36 million personal income tax assessment.
Peller was visibly shocked:
“I don’t have anything. I just came into the limelight last year… Government never gave me anything,” he said.
According to him:
His earnings are from international social media platforms like TikTok, not local events.
He believes the huge tax bill was triggered by his visible lifestyle and public discussion of his earnings.
He has never received official support from the Lagos State government.
During the livestream, Peruzzi told Peller:
“You must pay it… If you don’t, the government will arrest you.”
WHAT THE LAW SAYS
In Nigeria, taxation is a legal obligation, but its application to cross-border income can be complex.
1️⃣ Personal Income Tax Act (PITA), Cap. P8 LFN 2004 (as amended)
Section 2(1): Tax is payable on the income of any individual who is resident in Nigeria, from any source inside or outside Nigeria.
Section 3(1): All income from trade, profession, vocation, or employment is taxable. (This can include influencer and content creation income)
What this means for Peller:
Even if his income is from abroad, as a Nigerian resident, Peller is liable to pay tax on it.
2️⃣ Tax Residency Rule
Under Section 108, PITA, an individual is considered “resident” in Nigeria if they stay in the country for up to 183 days in a year.
It is obvious that Peller meets this threshold, all his global income becomes taxable in Nigeria.
3️⃣ Assessment & Dispute Resolution
If a taxpayer disputes an assessment, Section 58, PITA allows them to file a notice of objection within 30 days.
If unresolved, the matter can be escalated to the Tax Appeal Tribunal (TAT), as provided under the Federal Inland Revenue Service (Establishment) Act, 2007.
Implication:
Peller can legally challenge the ₦36 million demand by showing evidence of actual earnings and allowable deductions.
Therefore, while paying tax is indeed a civic duty, the law also ensures taxpayers have the right to question or appeal an assessment if they believe it’s incorrect.
Here are some Key Takeaways for all Content Creators across Nigeria:
1. Know Your Tax Obligations: If you live in Nigeria, your global income is taxable under PITA.
2. Keep Records: Document all your earnings, whether local or foreign, and allowable expenses.
3. You have the right to Challenge Unfair Assessments: Use your right under Section 58, PITA to object to questionable tax bills.
4. Seek Professional Advice: Tax laws can be quite technical. Therefore, endeavor to consult a tax lawyer or accountant before responding.
Finally, Peller’s outrage may reflect a growing reality in Nigeria; content creators are now squarely in Nigeria’s tax net. But taxation must be fair, transparent, and backed by due process.
The real question is whether Nigeria’s tax system will adapt to the digital economy in a way that’s just for both the state and its fast-rising online stars.
This is a development to surely keep an eye on. Share this to your content creator friends out there, you might be saving a soul from tax debt.