Nigeria: New 5% interest imposes on tax defaulters from July 1

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The Finance Minister on 22nd May 2017, announced that 5 per cent increased interest charge would impose from 1st of July 2017 on firms that fail to fulfill their tax obligations as and when due as part of measures to sanction tax defaulters and enhance voluntary compliance on tax obligation. The Minister said the review of the interest rates on unpaid taxes was one of the necessary measures adopted by the Federal Government to enhance tax compliance, minimize tax evasion and deter late payments. Such defaulters would pay about 19 per cent on their obligation which is 5 per cent above the Central Bank of Nigeria (CBN) 14 per cent policy rate. The Government would expect that the directive would have been published in the Federal Government’s gazette.

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