Taxpayers and their representatives are required by law to make full and accurate declarations when filing returns, responding to queries, or engaging with tax authorities in Nigeria. The provisions governing these obligations are contained within the relevant tax administration legislation.
When an untrue declaration is made—whether through omission, understatement, misrepresentation, or deliberate falsification—the taxpayer exposes themselves to a range of enforcement actions. These may include administrative penalties, the imposition of interest on outstanding liabilities, and in serious cases, referral for criminal investigation.
Tax authorities are empowered to conduct audits, request supporting documentation, and interview relevant persons to verify the accuracy of declarations submitted. Where discrepancies are uncovered, the burden of proof may shift, and the taxpayer could face an uphill task in demonstrating that an error was innocent rather than deliberate.
The distinction between an honest mistake and a knowing falsehood matters greatly. Regulators often look at patterns of behaviour, the materiality of the misstatement, and whether the taxpayer cooperated upon discovery. Nonetheless, ignorance of the law does not serve as a defence against penalties arising from incorrect filings.
For professional advisers and agents who facilitate untrue declarations, separate liabilities may arise, including professional sanctions and potential joint liability for tax lost. This underscores the need for due diligence at every stage of tax compliance.
Taxpayers are advised to review all declarations carefully before submission, retain adequate records to substantiate every entry, and seek professional guidance where the tax position involves complexity or uncertainty. Proactive engagement with the relevant tax authority upon discovery of an error can mitigate the severity of consequences.
