Tax Audit
Risk Checker
Assess your risk of being selected for a tax audit by the Nigeria Revenue Service. Answer a few questions to get your compliance risk score and recommendations.
Audit Risk Assessment
How Tax Audits Work in Nigeria
The NRS conducts tax audits to verify that taxpayers have correctly assessed and paid their taxes. Under the NTA 2025, the NRS has enhanced powers including access to bank records, third-party data, and digital analytics tools. Being selected for audit does not mean you did anything wrong — but being prepared significantly reduces stress and potential adjustments.
Common Audit Triggers
The most common triggers include: unfiled returns for multiple periods, significant unexplained drops in turnover, consistently reported losses despite visible business activity, large WHT claims without matching certificates, tip-offs from whistleblowers, and random selection during compliance campaigns.
Frequently Asked Questions
A typical desk audit takes 2-4 weeks. A comprehensive field audit can take 2-6 months depending on the complexity of your affairs and the availability of records.
No. The NRS has legal authority to audit any taxpayer. Refusal to cooperate can result in estimated assessments (which are usually higher), penalties, and potential prosecution.
Generally 6 years from the relevant assessment year. However, in cases of fraud or wilful neglect, there is no time limit — the NRS can go back indefinitely.
Bank statements, invoices, receipts, payroll records, tax returns, WHT certificates, asset registers, and contracts. Keep all records for at least 6 years. Digital records are acceptable.
Yes. You can object to an assessment within 30 days by writing to the NRS. If unresolved, you can appeal to the Tax Appeal Tribunal. Continue paying the undisputed portion during the appeal.
Voluntary disclosure of errors or omissions before an audit is announced typically results in reduced penalties. The NRS generally waives prosecution for voluntary disclosures made in good faith.
Yes: file all returns on time, reconcile WHT certificates, maintain complete records, respond promptly to NRS correspondence, and ensure your tax payments match your declared income levels.
You will receive an additional assessment for the shortfall plus interest at the CBN MPR and a penalty of 10% of the underpaid amount. If fraud is detected, criminal penalties may also apply.
Yes. You can authorise your tax consultant, accountant, or lawyer to represent you during the audit process. This is highly recommended for complex audits.
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