40 Addition for non- payment of tax and enforcement of payment

(1) Subject to the provisions of this Bill, if any tax is not paid within the period prescribed, a sum equal to 10 per cent of the amount of the tax payable shall be added and the provisions of this Bill relating to the collection and recovery of tax shall apply to the collection and recovery of such sum and further that:

(a) the tax due shall carry interest at the prevailing monetary policy rate of the Central Bank of Nigeria from the date when the tax becomes payable until it is paid, and the provisions of this Bill relating to collection and recovery of tax shall apply to the collection and recovery of the interest;

(b) the Service shall serve a Demand Note upon the company or person in whose name the tax is chargeable and if payment is not made within one month from the date of the service of such Demand Note, the Service may proceed to enforce payment under this Bill; and

(c) an addition imposed under this Clause shall not be deemed to be part of the tax paid for the purpose of claiming relief under any of the provisions of this Bill.

(2) Any person who, without lawful justification or excuse, fails to pay any tax imposed within the prescribed period commits an offence under this Bill.

(3) The Service shall have the power to remit any part or the whole of the addition due under Subclause (1) of this Clause.