Nigeria cracking down on tax evaders
Nigeria’s Federal Inland Revenue Service announced in August it would crack down on tax evaders by conducting audits of companies to ensure they are compliant with the regulations.
As the tax regulations grow in complexity, Nigerian companies and organizations must move from manual methods of recording tax information to more complex systems to meet their needs to comply, Sage West Africa, a supplier of accounting and business software, said.
Nigerian companies must ensure that they have robust, automated payroll systems and processes in place so that they can more easily comply with the demands of an increasingly tough tax regime in the country.
Magnus Nmonwu, regional director for Sage West Africa, said that Nigeria’s federal and state governments are eager to expand their tax bases, and are investing heavily in modernizing and streamlining tax administration. Given that they desperately need tax funds for social spending and infrastructure investment, they are closing in on companies that don’t comply.