LunagisthubNew Nigerian Tax Act: Understanding the Penalties for Non-Compliance
The Nigerian government has introduced a new tax act that outlines penalties for individuals and businesses that fail to comply with tax regulations. The penalties range from fines to imprisonment, and it’s essential to understand the implications of non-compliance
Penalties for Non-Compliance
The act specifies penalties for various offenses, including:
– Failure to keep books: N50,000 for companies
– Failure to grant access for technology deployment: N1,000,000 for the first day of default and N10,000 for each subsequent day
– Failure to use fiscalization system: N200,000 plus 100% of tax due and interest
– Failure to deduct tax: 40% of the amount not deducted
– Failure to remit tax deducted: 10% per annum and interest at the prevailing CBN rate
Imprisonment and Fines
In some cases, non-compliance can lead to imprisonment or fines. For example:
– Failure to remit tax deducted: up to three years imprisonment or a fine of not less than the principal amount due plus a penalty of not more than 50% of the sum
– Fraud related to stamps: imprisonment for up to three years or a fine of at least N2,000,000
– Impersonation of an authorized officer: a fine not exceeding N1,000,000 or imprisonment for up to three years
It’s crucial for individuals and businesses to understand the penalties for non-compliance with the new Nigerian tax act. Failure to comply can result in significant fines and imprisonment. It’s essential to seek professional advice to ensure compliance with the tax regulations
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