It is a common fact that the Tinubu led administration in Nigeria has embarked on tax reforms for tax administration efficiency. As a result, new laws including Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTA), Nigeria Revenue Service (NRS) Act and Joint Revenue Board of Nigeria (JRBN) Act have been enacted and would be operationally effective by January 1,2026.
As there are many provisions in it, this review only seeks to enlighten the public on common offences in the tax laws which may affect some taxpayers or members of public who may be involved in tax matters.
And since ignorance is not an excuse in law, then one needs to be acquainted with some of these offences and penalties ascribed thereto.
In a nutshell, it should be noted that while all the laws have offences and penalty attached,more offences are specifically spelt out in Nigerian Tax Administration Act, 2025. Therefore, this review will only delve into the NTAA, 2025.
According to Section 100 of NTA it is an offence for any taxable person not to register for tax. And where taxable person fails or refuses to register for tax, he shall be liable to administrative penalty of (a) N50,000 in the first month in which the failure occurs ; and (b) N25,000 for each subsequent month in which the failure continues and for a statutory body or company who awards a contract to an unregistered person, such shall be liable to pay an administrative penalty of N5,000,000
Similarly, failure to file returns or filing of incomplete/ inaccurate returns attracts administrative penalty of –(a) N100,000 in the first month in which the failure occurs; and (b) N50,000 for each subsequent month in which the failure continues (Section 101).
In another vein, it is also an offence to fail to keep accounts, books and records of business transactions. Anyone guilty of this shall be liable to pay an administrative penalty in the case of –(i) a person other than a company, N10,000, and (ii) a company, N50,000 (S.102,NTAA 2025)
Furthermore, refusal to grant access to tax authority is also an offence which attracts an administrative penalty of N1,000,000 for the first day of default and N10,000 for each subsequent day of default. This can be found in S.103 of NTAA 2025.
Moreover, failure to use fiscalisation system also attracts an administrative penalty of N200,000 plus 100% of the tax due and an interest at the prevailing CBN interest rate (S.104 NTAA 2025).
Anyone who failed to deduct tax is liable to an administrative penalty of 40% of the amount not deducted (S.105, NTAA,2025) even as failure to make attribution also attracts administrative penalty of N1,000,000 (S.106 NTAA 2025).
On the other hand, failure to remit tax deducted at source or self-account is an offence which attracts penalty of (a) the amount deducted, collected or withheld but not remitted; (b) an administrative penalty of 10% per annum of the tax deducted, collected or withheld but not remitted; and (c) interest at the prevailing CBN rate (S.107, NTA,2025). In the case of failure to self-account, the deafaulte is liable to pay (a) the tax not self-accounted for ; (b) an administrative penalty of 10% per annum of the amount not self-accounted for ; and (c) interest at the prevailing CBN monetary policy rate. Anyone convicted of any of the offences in S 107 is 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% of the sum, or both (S.107,NTAA,2025).
The excuse of forgetting to inform relevant tax authority of change in address or details now attracts penalty if not done within 30 days of such change or gives a wrong address. The penalty is an administrative penalty of –(a) N100,000 for the first month in which the failure occurs; and (b) N5,000 for each subsequent month the failure continues ((S.112 NTAA,2025)
For inducement of an authorized tax officer, the guilty person is liable on conviction in the case of (a) an individual, a penalty of N500,000 ; and (b) a body corporate, a penalty of N2,000,000 or imprisonment for a term not exceeding three years or both, in addition to paying the tax due.
Meanwhile, should anyone under the Act commit an offence and (a) If armed with any offensive weapon, such a person is liable to imprisonment for a term not exceeding five years and (b) if offensive weapon, causes injury to an officer, then the imprisonment for a term not exceeding 10 years. Also, impersonation of authorized person.
Specifically, the law frown at impersonation of tax authority by abhorring such practice under any guise of revenue collection illegality. So, Section 117 of NTAA, 2025 provides that a person, not being an authorised officer, who assumes the name, designation or impersonates the character of an authorised officer, for any purpose under the Act or any other tax law, is liable on conviction to a fine not exceeding N1,000,000 or to imprisonment for a term not exceeding three years or both.
For anyone either being a staff or not of any relevant tax authority who abets commission of any offence against the tax laws, Section 118 of NTAA, 2025 provides that such act is liable on conviction to a fine of 1,000,000 or imprisonment for a term not exceeding three years or both.
Should there be obstruction of in carrying out any provisions of the Act, Section 119 stipulates- administrative penalty of 1,000,000 ; and (ii) on conviction to a fine not exceeding N1,000,000 or imprisonment for a term not exceeding three years or both. S.119 NTAA
As for counterfeit documents provided to mislead tax authority, Section 125 o NTAA, 2025 sets administrative penalty of N1,000,000 and if convicted then imprisonment not exceeding three years or fine of N1,000,000 or both.
In case a corporate entity commits an offence under NTAA , 2025 relevant officer or agent of the Company shall be proceeded against and punished as if the offence was committed by such a person. For other offences under the Act for which there is no specific penalty, then administrative penalty of N1,000,000 ; or (b) on conviction, to imprisonment for a term not exceeding three years or to a fine or to both would be applicable. While the above treatise is not exhaustive of the offences and penalties stipulated in all the tax laws, it will however serve as quick reference for the common tax offences.
Luqman Soliu,
Olabisi Onabanjo University, Ago-Iwoye
Ogun State
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