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| Acting President Yemi Osinbajo signing the Executive Order of VAIDS flanked by (L-R) Gov Abdullahi Ganduje of Kano State, Gov Abdulaziz Yari of Zamfara State, Gov Ben Ayade of Cross River State, Mrs Kemi Adeosun, Minister of Finance and Gov Ibikunle Amosun of Ogun State |
The federal government on
Thursday launched its Voluntary Asset and Income Declaration Scheme (VAIDS) to
broaden the country’s tax base and offer incentives for tax evaders.
TheCable
report continues:
The
scheme was backed by an executive order by Acting President Yemi Osinbajo.
HERE
IS THE FULL TEXT OF THE EXECUTIVE ORDER:
“Whereas
the Constitution imposes a duty on every citizen to declare his/her income
fully and honestly to appropriate and lawful agencies and pay taxes promptly;
Whereas
every taxable person is under obligation to voluntarily declare his/her income
from all sources within and outside Nigeria by filing annual tax returns,
computing same and paying the tax due to the tax authority;
Cognisant of the
desirability of inculcating in all citizens, the ethics of responsibility to
the nation, accountability, and honesty;
Aware that the
Federal and State Governments owe citizens the duty of providing security,
welfare and development in all its parameters; and
Consequent upon
the determination of the Federal and State Governments to provide an
opportunity for taxpayers who are in default under all relevant Statutes to
voluntarily declare their Assets and Income and pay taxes due on them and in
return obtain some benefits.
NOW THEREFORE, PURSUANT TO THE AUTHORITY VESTED IN ME BY THE
CONSTITUTION AS THE ACTING PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA, I
HEREBY ORDER AS FOLLOWS:
1. The Federal
Ministry of Finance shall set up a Voluntary Assets and Income Declaration
Scheme (hereinafter referred to as “the Scheme”) for all categories of
taxpayers who have defaulted in payment of taxes due and collectible subject to
the fulfillment of the terms and conditions as may be stipulated in this Order
and other subsequent complementary regulations.
2. The Scheme
shall provide a nine (9) month period commencing from the 1st of July 2017 for
taxpayers who are in default of their tax liabilities to declare their assets
and income from sources within and outside Nigeria relating to the preceding
six (6) years of assessment.
3. The Scheme
shall encourage and provide an opportunity for eligible taxpayers to:
a. regularise
their tax status for all the relevant years;
b. pay all
outstanding taxes;
c. prevent and
stop tax evasion; and
d. ensure full
tax compliance.
ELIGIBILITY TO PARTICIPATE
4. The Scheme is
open to and targeted to all persons and entities that are in default of their
tax liabilities in any way whatsoever, including those who:
a. earn an income
or own assets but are yet to register with the relevant tax authorities;
b. are registered
taxpayers who have additional disclosures to make or need to amend prior
disclosures; and/or are registered but have not been filing returns;
c. have not been
fully declaring their taxable income and assets;
d. have been
underpaying or under remitting;
e. are under a
process of tax audit or investigation with the relevant Tax Authority; and/or
f. are engaged in
a tax dispute with the relevant Tax Authority but are prepared to settle the
tax dispute out of court.
REQUIREMENTS FOR VALID DECLARATION
5. In order for
an application pursuant to the Scheme to be valid, the following requirements
must be met:
a. the
disclosures by the taxpayer should be voluntary;
b. the disclosure
must be full, frank, complete and verifiable in all material respects;
c. the disclosure
must be made using the Voluntary Asset and Income Declaration Scheme forms or
in any other form or manner as may be prescribed under the Scheme; and
d. the assessment
of tax payable must be carried out by relevant tax authority.
RELIEFS/BENEFITS
6. Any taxpayer
who truthfully and voluntarily declares his assets and income, complies with
the regulations and guidelines and pays all outstanding taxes shall obtain the
following benefits.:
a. immunity from
prosecution for tax offences;
b. immunity from
tax audit;
c. waiver of
interest;
d. waiver of
penalties; and
e. option of
spreading payment of outstanding liabilities over a maximum period of three
years as may be agreed with the relevant tax authority.
Provided however
that the remission or waiver granted under these Regulations shall not
prejudicially affect or invalidate any court order or judgment already obtained
in respect of any default in payment of tax for which interest and/or penalty
have already accrued.
7. The reliefs
referred to in paragraph six (6) above are available in respect of all taxes
administered by the Federal Inland Revenue Service as well as those
administered by all State Boards of Internal Revenue.
CONSEQUENCES OF FAILURE TO COMPLY
8. Failure of any
defaulting taxpayer to truthfully and promptly take advantage of this Scheme
shall at the expiration of the Scheme result in the following consequences:
a. liability to
pay in full, the principal sum due;
b. liability to
pay all interest and penalties arising therefrom;
c. liability to
be prosecuted in accordance with relevant extant laws for tax offences;
d. withdrawal of
any reliefs, which may have been granted to the participant;
e. liability to
undergo comprehensive tax audit; and
f. any sum paid
in relation to the Scheme may be counted as part payment of any further
outstanding tax in respect of undisclosed information.
CONFIDENTIALITY OF INFORMATION
9. All
information provided by the taxpayer under the Scheme shall be treated with utmost
confidentiality in accordance with the provisions of the relevant laws save
where it is stated otherwise.
10. Any tax
official or persons duly authorised to receive information under the Scheme who
breaches the confidentiality of information received or exchanged under the
Scheme without due authorisation or in breach of relevant laws shall be liable
to prosecution under extant Federal and/or State Laws.
GENERAL
11. This
Executive Order is valid only for the period in which the Scheme shall subsist,
and relates to only persons who have voluntarily declared their assets and
income within and outside Nigeria for the purpose of ascertaining their
outstanding tax liability.
Provided however
that any rights and status properly acquired by any participating taxpayer
pursuant to the Scheme shall vest to the benefit of the taxpayer to the extent
provided for by law.
12. This
Executive Order shall be read in conjunction with all extant Tax Laws,
Regulations and Guidelines as well as those that may be issued pursuant to the
Scheme.
13. This
Executive Order shall take effect from the 1st day of July 2017.”
Dated this 29th
day of June, 2017.
Prof. Yemi
Osinbajo, SAN, GCON
Acting President of the Federal Republic of
Nigeria
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