Tax evasion doesn't just hurt the government; it impacts everyone. When people or businesses dodge taxes, there's less money for essential services like education, healthcare, and infrastructure. This shortfall affects the nation’s growth and places an unfair burden on honest taxpayers, eroding trust in the system.

Nigeria deals firmly with tax evasion. The government imposes fines, imprisonment, or both, depending on the severity of the offense. The Federal Inland Revenue Service (FIRS) conducts thorough investigations, ensuring that offenders pay back taxes along with penalties, which can include fines and asset seizures.

According to Section 40 of the Federal Inland Revenue Service Act 2007, tax evaders face criminal charges and must pay the withheld tax plus a 10% annual penalty.

Under the Companies Income Tax Act, failing to remit profits results in penalties—starting at N25,000 for the first month of default and N5,000 for each subsequent month. Tax receipts are essential for international migration and business registration.

Tax laws can be tricky, and there's a fine line between evading taxes and managing them wisely. That's where TaxPal and our comprehensive tax guide come in.

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Long before we need to evade, Nigerian tax is as below.

Taxes that will still be looted be the politicians.