Companies and statutory bodies that award contracts to unregistered persons will face a N5 million administrative penalty under Nigeria’s tax law.
According to the provisions of the Nigeria Tax Administration Act, a taxable person who fails or refuses to register for tax will be liable to a penalty of N50,000 in the first month of default and N25,000 for each subsequent month the failure continues.
“A statutory body or company who awards a contract to an
unregistered person, shall be liable to pay an administrative penalty of
N5,000,000,” the Act said.
The law also prescribes penalties for failure to file tax
returns or for knowingly filing incomplete or inaccurate returns.
Such offenders will pay N100,000 in the first month of
default and N50,000 for each subsequent month the failure persists.
Under the Act, a person who refuses to grant the relevant
tax authority access to deploy technology after 30 days of receipt of the
notice will be liable to a penalty of N1 million on the first day of default
and N10,000 for each additional day the default continues.
“A taxable person that fails to process a taxable supply
through the fiscalisation system is liable to an administrative penalty of
200,000 plus 100% of the tax due and an interest at the prevailing Central Bank
of Nigeria Monetary Policy rate per annum,” the law said.
“A person who has an obligation to collect, deduct or
withhold tax under the relevant tax laws, and fails to collect, deduct or
withhold the tax due is liable to an administrative penalty of 40% of the
amount not deducted.”
The Act also imposes a N1 million penalty on any person
required to make tax attribution who fails to do so or, having made the
attribution, fails to notify the relevant tax authority.
The NTAA added that a person convicted of any of the
offences under this section, shall be liable to a term of imprisonment not
exceeding three years, or a fine of not less than the principal amount due plus
penalty of not more than 50 percent of the sum, or both.
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