Penalties for Non-Compliance with the Comprehensive Tax System

Failing to meet tax obligations can lead to severe financial and operational consequences. Hence, it is essential for taxpayers to comply with regulations.

This article outlines the penalties businesses may face for non-compliance and how to avoid them.

Types of Non-Compliance and Associated Penalties

1. Late Payment of Quarterly Tax

Businesses under the comprehensive tax regime must pay taxes quarterly, no later than 15 days after the end of each quarter. Late payments result in:

• 10% penalty on the outstanding amount.
• Additional interest charges if the delay extends beyond a certain period.
• Potential business closure in extreme cases of persistent non-payment.

For details on quarterly tax payments, refer to Quarterly Tax Payments Made Easy.

2. Failure to Declare Annual Turnover

Each business must declare its previous year’s turnover to determine its tax bracket for the current year. Failing to do so may lead to:

• A penalty of up to 25% of the estimated tax amount.
• Additional tax assessments based on tax authority estimates.

3. Non-Presentation of Tax Clearance Certificate

Businesses that fail to present a tax clearance certificate when required may face:

• Fines of up to 25,000 FCFA.
• Administrative restrictions on business operations.

Learn more about tax clearance certificates in Comprehensive Tax Eligibility: Are You Liable?.

4. Failure to Maintain Accounting Records

Businesses with turnover exceeding 10 million FCFA are required to maintain proper accounting records. Non-compliance results in:

• Fines of up to 1 million FCFA.
• Increased scrutiny and potential audits by tax authorities.

5. Attempted Tax Evasion

Intentional tax fraud or misrepresentation carries heavy penalties, including:

• Fines of up to 100% of the evaded tax amount.
• Criminal prosecution for severe cases.

How to Avoid Tax Penalties

✅ Pay Quarterly Taxes on Time – Ensure payments are made electronically before the deadline.

✅ Declare Turnover Accurately – Keep clear records of revenue to avoid miscalculations.

✅ Maintain Proper Accounting Records – Businesses with turnover above 10 million FCFA must comply with accounting regulations.

✅ Obtain Tax Clearance Certificates – Required for government contracts, business licensing, and financing applications.

For more details, visit OpenHub Consulting’s Tax Management Services.

Tax compliance under the comprehensive tax system is straightforward but must be taken seriously.

Avoiding penalties ensures a smooth business operation, financial stability, and a strong relationship with tax authorities. Stay compliant and avoid unnecessary fines.