Offences and penalties in new Nigerian Tax Act (2)

The new Tax Act significantly increases penalties for non-compliance with fines, interest and possible jail terms for serious offences. 

For example, assaulting a tax officer can attract up to ₦10 million fine and 10 years’ imprisonment, especially if a weapon is used. 

Attempting to influence or induce a tax officer carries fines and possible imprisonment as well. 

Virtual asset service providers (crypto businesses) that default on compliance can face an initial ₦10 million fine and ₦1 million for every subsequent month of non-compliance, plus the possibility of SEC licence suspension or revocation. 

Penalties include specific fines for things like failing to register for tax, late filing, failure to keep books, and refusing access to technology or fiscal systems. 

The Act also lists offences such as impersonation of an authorised tax officer, aiding/abetting tax offences, and obstruction of tax authority operations each with defined penalties. 

Some minor administrative defaults now attract regular monthly fines that accumulate quickly if not addressed. 

The Tax Act is part of Nigeria’s comprehensive tax overhaul aimed at modernising the system, boosting equity, and supporting infrastructure funding, as it replaces older fragmented tax laws and unifies compliance rules. 

Non-serious defaults (like late filing or failure to register) now come with specified monetary fines that escalate over time if ignored. 

Serious wrongdoing such as false declarations, tax fraud, or obstruction of tax operations can now lead to criminal prosecution, hefty fines, and prison terms. 

Penalties are designed to support stronger enforcement and discourage deliberate avoidance or evasion.