Things You Cannot Do In Nigeria Without A Tax Clearance Certificate

Daily Law Tips (Tip 373) by Onyekachi Umah, Esq., LLM.
ACIArb(UK)

THINGS YOU CANNOT DO IN NIGERIA WITHOUT A TAX CLEARANCE
CERTIFICATE.

Tax is revenue for government and government must ensure tax
payers comply and pay adequate tax. By law, government ministries,
departments, agencies, parastatals and establishment or commercial
bank while dealing with any person must demand from the person a
valid tax clearance certificate and also verify the genuineness of
same by referring it to the issuing tax office.

Below is a list of things/transactions you cannot do/conduct in
Nigeria without a tax clearance certificate:

(a) application for Government loan for industry or
business;
(b)    registration of motor vehicle;
(c)    application for firearms licence;
(d)    application for foreign exchange or exchange
control permission to remit funds outside Nigeria;
(e)    application for certificate of occupancy;
(f)     application for award of contracts by
Government, its agencies and registered companies;
(g)    application for approval of building
plans;
(h)    application for trade licence;
(i)     application for transfer of real
property;
(j)     application for import or export
licence;
(k)    application for agent licence;
(l)     application for pools or gaming licence;
(m)   application for registration as a contractor;
(n)    application for distributorship;
(o)    confirmation of appointment by Government as
chairman or member of a public board, institution, commission,
company or to any other similar position made by the
Government;
(p)    stamping of guarantor’s form for a Nigerian
passport;
(q)    application for registration of a limited
liability company or of a business name;
(r)     application for allocation of market
stalls;
(s)    appointment or election into public office.
(t)     for change of ownership of vehicle by the
vendor;
(u)    application for plot of land; and
(v)    any other transaction as may be determined from
time to time.
(w) application for control permission to remit funds abroad to a
non-resident from rent, dividends, interest, royalty and fee,
etc.

Note that failure of government organisation or commercial bank
to demand and obtain tax clearance certificate of a person before
relating with such person on the above listed issues has committed
an offence and it is punishable with fine of 5 Million Naira and or
imprisonment for 3 years.

My authorities are sections 1, 2, 3, 85, 108 and 109 of the
Personal Income Tax Act 1993.

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