The Digest:
The Nigeria Tax Administration Act (NTAA) has introduced stringent penalties for tax non-compliance, including a ₦5 million fine for companies that award contracts to unregistered persons and a ₦50,000 initial penalty for individuals who refuse to register. The law aims to enforce fiscal discipline through a rigorous system of administrative and criminal sanctions.
Key Points:
- Companies or statutory bodies awarding contracts to unregistered persons face an administrative penalty of ₦5 million.
- Taxable individuals who fail to register are liable to a ₦50,000 fine in the first month, plus ₦25,000 for each subsequent month.
- Failure to file returns or submitting inaccurate ones incurs a ₦100,000 initial fine, then ₦50,000 per additional month.
- Refusing to allow tax authorities to deploy technology after notice leads to a ₦1 million fine plus ₦10,000 daily.
- Not processing taxable supplies through the fiscalisation system triggers a ₦200,000 penalty plus 100% of the tax due.
- Failing to deduct or withhold tax results in a penalty of 40% of the amount not remitted.
- Convicted offenders may face up to three years imprisonment, a fine of the principal tax plus 50%, or both.
Sources: Business Day
