Section 32: Addition for non-payment of tax and enforcement of payment.

(1) Subject to subsection (3) of this section, if any tax is not paid within the periods prescribed-
(a) a sum equal to 10 per cent of the amount of the tax payable shall be added thereto, and the provisions of the Act relating to the collection and recovery of tax shall apply to the collection and recovery of such sum ;
(b) in the case of Naira remittances, the tax due shall carry interest at the prevailing minimum rediscount rate of the Central Bank of Nigeria plus spread to be determined by the Minister from the date when the tax becomes payable until it is paid, and the provisions of the Act relating to collection and recovery of tax shall apply to the collection and recovery of the interest ;
(c) in the case of foreign currency remittance, the tax due shall incure interest at the prevailing London Inter Bank Offered Rate or the prevailing minimum rediscount rate of the Central Bank of Nigeria whichever is higher, plus spread to be determined by the Minister from the date when the tax becomes payable until it is paid, and the provisions of the Act relating to collection and recovery of tax shall apply to the collection and recovery of the interest;
(d) the Service shall serve a demand notice upon the company or person in whose name a tax is chargeable and if payment is not made within one month from the date of the service of such demand notice, the Service may proceed to enforce payment under this Act ; and
(e) an addition imposed under this subsection shall not be deemed to be part of the tax paid for the purpose of claiming relief under any of the provisions of this Act.
(2) Any person who without lawful justification or excuse fails to pay a tax within the period of one month prescribed in subsection (1) (d) of this section, commits an offence under this Act.
(3) The Board may, for any good cause shown, remit the whole or any part of the addition due under subsection (1) of this section.