Companies and statutory bodies that award contracts to unregistered individuals will now face an administrative penalty of N5 million under the Nigeria Tax Administration Act (NTAA).
The Act also stipulates penalties for individuals who fail or refuse to register for tax. Such persons will be fined N50,000 in the first month of default and an additional N25,000 for every subsequent month the failure continues.
According to the law, any statutory body or company that awards a contract to an unregistered person will be liable to pay an administrative penalty of N5,000,000.
The Act further outlines sanctions for failure to file tax returns or for knowingly submitting incomplete or inaccurate returns. Offenders will pay N100,000 in the first month of default and N50,000 for each additional month the failure persists.
Under the NTAA, refusal to grant the relevant tax authority access to deploy approved technology after 30 days of notice will attract a fine of N1 million on the first day of default, with an additional N10,000 for every day the default continues.
The law also states that any taxable person who fails to process a taxable supply through the fiscalisation system will be liable to an administrative penalty of N200,000, in addition to 100 per cent of the tax due and interest calculated at the prevailing Central Bank of Nigeria Monetary Policy rate.
Furthermore, any person required to collect, deduct, or withhold tax who fails to do so will face a penalty of 40 per cent of the amount not deducted. A separate N1 million penalty applies to failure to make required tax attribution or notify the relevant tax authority after such attribution.
The Act adds that any person convicted of offences under these provisions may face imprisonment for up to three years, a fine of not less than the principal amount due plus a penalty of up to 50 per cent of the sum, or both.
