Section 107 Nigeria Tax Administration Act 2025

Section 107 of the Nigeria Tax Administration Act 2025 is about Failure to remit tax deducted at source or self-account. It provides as follows:

(1) A person, that deducts, collects or withholds any tax under this Act, and fails to remit the amount deducted, collected or withheld by the 21st day of the month immediately succeeding the month in which the amount was deducted, collected or withheld, is liable to pay –

(a) the amount deducted, collected or withheld but not remitted ;

(b) an administrative penalty of 10% per annum of the tax deducted, collected or withheld but not remitted ; and
(c) interest at the prevailing Central Bank of Nigeria monetary policy rate.

(2) A person required to self-account under this Act and fails to self-account within the time prescribed by this Act, is liable to pay –
(a) the tax not self-accounted for ;

(b) an administrative penalty of 10% per annum of the amount not self-accounted for; and
(c) interest at the prevailing Central Bank of Nigeria monetary policy rate.

(3) A person convicted of any of the offences under this section, shall be liable to a term of imprisonment not exceeding three years, or a fine of not less than the principal amount due plus penalty of not more than 50% of the sum, or both.

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