Objectives
At the end of this chapter, readers are expected to
-
i.
know different punishments attached to different categories of tax offences in Nigeria.
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Notes
- 1.
Abdulrazaq M.T. op. cit. (n. 248), p. 2.
- 2.
(1927) 275 US 100. See further, Commissioner of Inland Revenue v. Challenge Corporation Ltd (1987)1 AC 155 at 167 where the court held that hidden the material fact in tax assessment form or returns from tax commissioner constitute tax evasion.
- 3.
Arogundade J.A Nigerian Income Tax and Its International Dimensions (Ibadan Spectrum Books Ltd, 2005), p. 74.
- 4.
Bhatia H.L Public Finance (5th ed. London Oxford University Press, 1980), p. 4.
- 5.
Section 26(a)(b) VAT CAP VI LFN 2004.
- 6.
Ibid.
- 7.
Section 39(2) FIRS Act, 2007, See also Section 50(2)(a)(b) FIRS Act 2007.
- 8.
Ibid. However, disclosure of confidential information ceases to be an offence if otherwise provided by the tax law or as otherwise authorised by the Minister, or according to Section 50(3) FIRS Act 2007, as may be necessary in order to institute a prosecution, or in the course of a prosecution for any offence in relation to any tax in Nigeria.
- 9.
In Section 3(2)(a)(b) thereto.
- 10.
Income Tax Act.
- 11.
Ibid.
- 12.
Federal Inland Revenue Service Act, 2007.
- 13.
Section 40 FIRS Act 2007.
- 14.
In Section 41 (a–d).
- 15.
In Section 42(1)(a)(b).
- 16.
Section 42(3) FIRS Act, 2007.
- 17.
Section 43 (a–e) FIRS Act, 2007.
- 18.
Ibid.
- 19.
Section 44 FIRS Act, 2007.
- 20.
Section 97 (a)(b) PIT Act, 2004.
- 21.
Ibid.
- 22.
95(a)(i–iv)(b) CITA, 2004.
- 23.
Ibid.
- 24.
Section 45(1) FIRS Act, 2007.
- 25.
Section 45(2) FIRS Act, 2007.
- 26.
Section 46 FIRS Act, 2007.
- 27.
Section 49 (1)(2)(a–d) FIRS Act, 2007.
- 28.
Section 94(1) PITA, 2004.
- 29.
Section 92(1) CITA, 2004.
- 30.
See Section 53(7) Personal Income Tax Act (as amended by Act No 20 2011) obstruction is also an offence under Section 105 PITA.
- 31.
A tax clearance certificate is a certification paper normally given by the tax authority on demand by taxpayer signifying and confirming that the holder is up to date in the payment of his tax. Obtaining a tax clearance by a taxpayer does not preclude tax authority from further checking and confirming that the taxpayer has paid the correct amount before the issuance of agreement of taxpayer account notice. If revenue disagrees with any item in the account additional assessment will be raised on the taxpayer even after the issuance of the clearance certificate. For detail distinction between tax clearance certificate and statement of agreement of taxpayer account, see, James Adebisi Ariwodola, Personal Taxation in Nigeria: Including Capital Gains Tax (4th ed. JAA Nig Ltd, Lagos, 2002), p. 157.
- 32.
Section 85(7)(a)(b) PITA.
- 33.
The items as listed are;
(a) application for Government loan for industry or business;
(b) registration of motor vehicle;
(c) application for firearms licence;
(d) application for foreign exchange or exchange control permission to remit fund outside Nigeria;
(e) application for Certificate of Occupancy;
(f) application for award of contracts by Government, its agencies and registered companies;
(g) application for approval of building plans;
(h) application for trade licence;
(i) application for transfer of real property;
(j) application for import or export licence;
(k) application for agent licence;
(l) application for pools or gaming licence;
(m) application for registration as a contractor;
(n) application for distributorship;
(o) confirmation of appointment by Government as chairman or member of a public board, institution, commission, company or to any other similar position made by the Government;
(p) stamping of guarantor’s form for a Nigerian passport;
(q) application for registration of a limited liability company or of a business name;
(r) application for allocation of markets stall;
(s) appointment or election into public office.
(t) for change of ownership of the vehicle by the vendor;
(u) application for a plot of land;
(v) any other transaction as may be determined from time to time.
- 34.
See Section 85(a) PITA.
- 35.
Section 96(1)(a)(b) PITA. A similar provision for such an offence and punishment in the case of Company is contained in Section 94(1)(a)(b) CITA.
- 36.
Section 39 of VAT Act is on power to enter any premises at any time by an authorised officer without warrants once such officer has reasonable ground to believe that a person is carrying on business that necessitated an ascertainment whether VAT Act is being complied with or not in the business.
- 37.
The requirement under Section 5 of VAT Act is on the required information to determine the value of taxable goods and services.
- 38.
Similar provision on wrongful procurement of information is in Section 30 VAT Act 2004.
- 39.
Section 31 VAT Act, 2004.
- 40.
Section 36 VAT Act, 2004.
- 41.
Section 36(2) VAT Act, 2004.
- 42.
Section 2(2) Taxes and Levies (Approved List for Collection Act) CAP T2, LFN, 2004.
- 43.
Section 3 Taxes and Levies (Approved List for Collection Act) CAP T2, LFN, 2004.
- 44.
Section 4 thereto.
- 45.
See Section 94 (PITA) and Section 92 (PITA) 2004.
- 46.
See Section 27(2) FIRS Act 2007. Similar offence and penalty are in Section 26(1)(a–d)(3) FIRS Act, 2007.
- 47.
See Section 28(1)(a)(b)(c) FIRS Act 2007.
- 48.
See Section 28(3) FIRS Act 2007.
- 49.
See Section 52(1)(2) PITA, Sections 47(3) and 49(3) also of PITA applies to anybody engages in the business of banking in Nigeria that contravenes the keeping of accurate book of account for tax purposes. The only groups of people that cannot be charged for not keeping a book of account are those in salary employment who are not engaged in any other private business.
- 50.
Section 18 Pay As You Earn (PAYE) Regulations in PITA, 2004.
- 51.
Section 69 is on deduction of tax on rent, while the same is in Section 79 CITA.
- 52.
Section 70 is on deduction of tax on interest, the same is in Section 78 CITA.
- 53.
Section 71 is on deduction of tax on dividends, same in Section 80 CITA.
- 54.
Section 72 is on deduction of tax on director’s fees, Deduction at source is same in Section 81 CITA.
- 55.
Section 5 PITA.
- 56.
Section 84 CITA, 2004.
- 57.
See Section 74 PITA, 2004 and also Section 82 CITA cap C21 CFN 2004 for companies.
- 58.
The period prescribed in Section 68 (1)(3) are in the instances of assessment not subject of an objection or appeal and after deduction of other tax incidences shall be paid within 2 months after the date of service of that notice. On assessment subject to appeal, after determination of objection or appeal, tax chargeable as so determined by appeal tribunal shall be payable within one month of the date of service of the notice.
- 59.
See Section 76(1) PITA, 2004. In a similar situation, Section 76(4) PITA provides that any person who without lawful justification or excuse, after the service of demand note on him, fail to pay the income tax within the period of 1 month from the date of service of demand note shall be guilty of an offence under the Personal Income Tax Act. And Section 76(3) provides further that a penalty imposed under Section 76 PITA shall not be deemed to be part of the tax paid for the purpose of claiming relief under any provision of the PITA.
- 60.
See Section 76(2) PITA, 2004.
- 61.
See Section 76(3) PITA, 2004.
- 62.
Section 21 Operation of Pay As You Earn (PAYE) Scheme Regulations.
- 63.
Section 2(2) Operation of Pay As You Earn (PAYE) Scheme Regulations.
- 64.
See Section 19 Operation of Pay As You Earn (PAYE) Scheme Regulations.
- 65.
Section 27 (1) Tax Administration (Self-Assessment) Regulations, 2011.
- 66.
Section 27 (2), ibid.
- 67.
Section 28, ibid.
- 68.
Section 29, ibid.
- 69.
Section 30, ibid.
- 70.
Section 31, ibid.
- 71.
Section 32, ibid.
- 72.
Section 28 VAT Act, 2004.
- 73.
Section 29, ibid.
- 74.
Section 32, ibid.
- 75.
Section 33, ibid.
- 76.
Section 34, ibid.
- 77.
Section 35, ibid.
- 78.
See Section 37 VAT Act, 2004.
Relevant Authorities and Reference for Further Reading
Cases
Bullen v. Eisconsin 275 US 100. On the fact that tax evasion is “illegal and fraudulent attempts to escape or avoid the payment of taxpayers’ dues” (1927)
Commissioner of Inland Revenue v. Challenge Corporation Ltd.1 AC 155 at 167 Where the court held that, hidden the material fact in tax assessment form or returns from tax commissioner constitute tax evasion (1987)
Books
Abdulrazaq, M.: Nigerian Tax Offences and Penalties. Batay Law Publication Ltd, Ilorin (1993)
Arohundade, J.A.: Nigerian Income Tax and Its International Dimensions. Ibadan Spectrum Books Ltd. (2005)
Bhatia, H.L.: Public Finance, 5th edn. London Oxford University Press (1980)
Ariwodola, J.A.: Personal Taxation in Nigeria: Including Capital Gains Tax, 4th edn. JAA Nig Ltd, Lagos (2002)
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Olokooba, S.M. (2019). Offences and Sanctions Under the Nigerian Tax Laws. In: Nigerian Taxation. Springer, Singapore. https://doi.org/10.1007/978-981-13-2607-3_8
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