Is Tax Evasion a Crime in Nigeria

Tax evasion is a crime and carries penalties under tax law. Therefore, it is obvious that the only way to protect oneself from such embarrassment is to obey the law by ensuring that one fulfills one`s civic responsibility. Nigeria is said to lose billions of dollars in tax revenue almost every year, due to unreformed tax systems and inefficient tax laws that have supported tax evasion and evasion. In short, tax avoidance and evasion undermine the growth and development of any economy. Fortunately, the new 2020 finance law has closed loopholes that rogue taxpayers are likely to exploit to minimize tax debt. The laws have been clearly formulated and are no longer ambiguous, which hinders the practice of tax avoidance and evasion. The inflation of charitable donation deductions is another way to avoid tax payments. Therefore, these deductions should not be falsely claimed or inflated. As soon as there is inflation and misrepresentation of charitable donation deductions, it is a form of tax evasion. This is the deliberate refusal to pay taxes or the underpayment of taxes. Tax evasion has been interpreted as an illegal practice in which a person, entity or entity intentionally evades payment of its genuine tax liability. Tax evasion can also be defined as a deliberate practice of not declaring all taxable income in order to pay taxes at a reduced rate. This is a deliberate violation of tax laws and is evident in cases where the tax liability is fraudulently reduced.

This is one of the problems plaguing economic growth and development in Nigeria. The reasons for tax evasion and tax evasion in Nigeria have been discussed as follows: However, there are different types of tax evasion, as I will explain some of the common forms of tax evasion here. So what is tax evasion? Tax evasion is defined by the Canadian Department of Finance in a very simple way as “the omission or commission of an act with the wilful intention of deception so that the tax reported by the taxpayer is less than the tax payable under the law or a conspiracy to commit such an offence. This can be achieved by intentional omission of income, fraudulent assertion of expenses or remuneration, and intentional misrepresentation, obfuscation or retention of material facts. Models of tax evasion may include, but are not limited to: Over the past decade, we have had alleged cases that have been dismissed by Nigerian courts just so that the same defendants have been fully convicted overseas. There`s a popular saying that “madness means doing the same thing over and over again and expecting different results.” With the population of lawyers and tax specialists in Nigeria, we should not be considered crazy in this area unless lawyers and tax specialists admit to being collaborators in this great crime against the nation. I will not try to explain why corruption is still a “national character” in the country, even though most Nigerians are very religious. Nor will I try to divide corruption and other financial crimes into different categories. In this article, I focus on assessing how we can use our tax laws as a tool to fight and prosecute corruption.

It is surprising that the EFCC and/or the Federal Inland Revenue Service (FIRS) do not yet appear to have a strong division for tax evasion offences. Our tax administration, particularly the ability to prosecute tax evaders and those with illegal funds, needs to be further developed as an important part of the federal government`s strategy to combat the threat of corruption and promote ethical transparency in business transactions. This approach will also encourage voluntary compliance with tax obligations, as taxpayers believe that tax laws do not exempt those who have been “super-rich” by dubious sources. This strategy will bring Nigeria to the same level as other leading countries in terms of prosecuting tax evasion offences. As President Buhari once said, “If we don`t kill corruption, corruption will kill Nigeria.” It is time for Nigerians to ensure that we have appropriate strategies and processes in place to “kill” corruption. The Nigerian government needs to be more serious in the fight against corruption. Tax evasion consists of deliberately distorting one`s true financial situation with the tax authorities in order to reduce one`s tax liability. Here are examples of tax evasion: 6. thenationonlineng.net/fighting-tax-evasion-in-nigeria/ , last visited on 25/01/2018. In the above-mentioned case, the court referred to Phoenix Motors Ltd v. N.E.P.M.B.

From the above judgment, it can be deduced that tax evasion, no matter how unworthy a country is of its tax. This is a despicable practice condemned by the judiciary and any legitimate person. A tax evader can be brought to justice for tax evasion. This is a criminal offence and you can be fined or imprisoned. Tax evasion in Nigeria is punishable under section 40 of the Federal Tax Service Act. In addition, obstructing or attacking an authorized tax officer in the performance of his or her duties is also a criminal offence under section 41 of the Act. Anyone guilty of this can be punished with a fine or three years in prison, or both. One of the different types of tax evasion is the provision of information that is not accurate and reliable.

Incorrect information. Strict enforcement of sanctions for tax offences15, including: custodial sentences (Article 92 CITA), fines, including the payment of interest (Article 35 VATA) and the express intention to apply the full weight of the law to taxpayers for non-compliance who do not use the Voluntary Declaration of Assets and Income (VAIDS) regime to regularise their tax status by 31 March; 2018. Strict enforcement of sanctions for tax evaders will reduce or even eliminate tax evasion. The impact of tax evasion on government revenues cannot be overstated. In Nigeria, there are fines and tax penalties for defaulting debtors. Section 66 of the Corporate Tax Act (CITA) gives firS the power to seize and sell, in extreme cases, the property, movable property and premises of defaulting taxpayers in order to recover the amount of tax from such taxpayers. So our tax laws are strong enough to tax illicit wealth and help our anti-corruption agencies use those laws as a basis for prosecuting people with illegal wealth and other tax evaders all the way to our Supreme Court. .