The Nigeria Tax Administration Act (NTAA) imposes clear obligations on taxpayers to furnish accurate and truthful information when filing returns, responding to enquiries, or making declarations to the Federal Inland Revenue Service (FIRS). Submitting an untrue declaration is not treated as a minor oversight; it attracts significant statutory consequences.
Under the NTAA, a false or misleading statement made to a tax official—whether in a return, a notice, or any other document—can trigger administrative penalties. Beyond the immediate fines, the taxpayer may also become liable for the full amount of tax that ought to have been paid, together with interest accruing from the date the tax originally fell due.
The law further empowers the FIRS to conduct investigations and audits where there are grounds to believe a taxpayer has made an untrue declaration. Where deliberate falsification or wilful default is established, the matter may be escalated for criminal prosecution, carrying the risk of conviction, heavier fines, and even custodial sentences.
Tax professionals have cautioned that ignorance of the law or reliance on third-party agents does not absolve a taxpayer of responsibility for the accuracy of declarations submitted in their name. The NTAA places the ultimate duty of care on the taxpayer to ensure that every figure, claim, and disclosure is complete and correct.
In an environment where the FIRS is increasingly deploying data-matching technology and inter-agency information sharing, the likelihood of detecting untrue declarations has risen substantially. The risks therefore extend beyond legal penalties to include reputational damage and disruption of business operations.
