Why Compliance is the Biggest Risk for Nigerian HR Teams

In the current regulatory environment, the cost of non-compliance far outweighs the cost of compliance. Nigerian tax authorities have become more aggressive in enforcement, utilizing technology to track non-remittance.

The Risks of Non-Compliance

1. Financial Penalties

failure to remit PAYE or file returns on time attracts monthly penalties and interest. Over a few years, these can compound into millions of Naira.

2. Reputational Damage

Being listed as a tax defaulter can damage your company's brand and hinder ability to secure government contracts or investments.

3. Business Disruption

Audits can freeze business operations. Sealing of premises by task forces is a real possibility for chronic defaulters.

Mitigating the Risk

• Timeliness: Adhere strictly to the 10th (PAYE) and 21st (VAT) filing deadlines.
• Accuracy: Reconciling payroll figures with general ledger entries monthly.
• Documentation: Maintain proof of remittance for at least 6 years.

Conclusion

Compliance should be the bedrock of your HR operations. Utilizing a platform like Sabitax ensures that dates are never missed and calculations are always precise, shielding your organization from avoidable risks.