The noun “enforcement” is the act of enforcing, ensuring observance of or obedience of the law, or compulsion. The verb “to enforce” means “to give force to”, “to urge”, “to drive”, ”to compel”, “to apply force to”. Thus enforcement of tax payment refers to an activity or a process/group of activities undertaken, to ensure compliance with the provisions of the tax laws.
Enforcement is evoked in tax administration to correct anomalies arising when tax provisions have been violated i.e. a taxpayer has knowingly or intentionally refuse to comply with the tax laws particularly in payment of taxes.
Tax enforcement normally commences when there is a failure by a taxpayer to comply with specific provisions of the tax laws.
Legal Provisions for Enforcement for Tax Payment
Enforcement activities for recovery of outstanding tax debts are backed by the tax laws.
(i)Federal Inland Revenue Service (Establishment) Act (2007) Section 32 (addition for non-payment of tax and enforcement of payment) Section 33(power to distrain)section 34 (power to recover tax by a civil action)and section 36 enforcement powers such as power to enter any premises, inspect, search and remove any obstruction.
(ii)Companies Income Tax Act Cap c 21 LFN (2004) Section 64 (power to enter and search premises), 86 (power to distrain for non-payment of tax), Fourth Schedule warrant and authority to levy by distress and sixth Schedule, warrant and authority to enter premises, offices etc.
(iii)Personal Income Tax Act section 53 (power to enter and search premises), section 78 (tax may be sued for and recovered in a court of competent jurisdiction) ,section 103 (power to enter and require information), section 104 (power to distrain for non-payment of tax)and Eighth Schedule (Warrant and Authority to enter premises.)
(iv)Petroleum Profits Tax Act section 48 (tax may be sued for and recovered in a court of competent jurisdiction.)
(v)Judgement Debts
(vi)Sheriff and Civil Process Act
No legal provisions relating to enforcement of tax in Capital Gains Tax Act, Education Tax Act,Industrial Development (Income Tax Relief Act
Types of tax enforcements
(i)Aggressive tax drive
This process is not specifically mentioned in the tax laws. It is a process whereby field officers in relevant Tax Authorities, accompanied by their legal staff and sometimes by Special Purpose Tax Officers besiege indebted companies and Government establishments to force the Chief Executives undertake to pay the liabilities within a stated time frame. This process has recorded tremendous successes in the LIRS and FIRS.
(ii)Search and seizure
This is a useful method by which tax can be recovered. The procedure for Search and Seizure are provided for under Section 36 of the FIRS Act (2007) and Section 64 of the CITA (2004) and section 53 of the Personal Income Tax Act.
The Power of Search and Seizure is restricted to records, documents, books and other articles used or suspected to be used in the commission of any tax related offence.
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Search and Seizure Provision as provided in Companies Income Tax Act Cap. C21 LFN 2004.
This provision was introduced into the Nigerian tax law by Decree No. 21 of 1991 which amended CITA 1979, to enable the tax authorities deal with recalcitrant taxpayers. The term Search and Seizure refers to a specific method used by enforcement officers to investigate crimes, track down evidence, question witnesses, and arrest suspects.
Search and seizure practices are engaged in by law enforcement officers in order to gain sufficient evidence to ensure the arrest and conviction of an offender.
Teju Somorin
