TAX PENALTIES

It is very interesting to note that many business people are getting interested in the basic principles of Tax in Nigeria. Tax is very important and must not be ignored by any entrepreneur who wants to succeed and grow his/her business. The penalties for tax offences are punitive and costly.

Tax penalties include interest on penalties.  You will be losing money when you pay tax penalties and interest. Penalty is in addition to the tax you are charged.  It is therefore in your interest to avoid tax penalties.  One very important point you should bear in mind is that tax penalties are not only money payment.  It may include imprisonment for a specific term.  Why should you allow yourself to become an ex-convict because of tax?  Don’t ignore letters from the tax authorities.  Attend to them promptly.  Look for a Tax Consultant to help you out.  You will have peace of mind in addition to paying less money even if it is only meeting the deadlines, which allows you to escape from paying penalties.  Tax is important.  Tax is a Civic responsibility.  Please do avoid evading payment of tax.  It is an offence to evade tax. 

One of the major softwares that can help you put your accounting records straight is Businessprofits, this will further help you have clearer details of your figures before the taxman comes knocking.

Someone asked me a question about Value Added Tax (VAT), which I will like to answer IN THE NEXT episode.