Acting President Yemi Osinbajo has forewarned tax evaders in Nigeria that they have some few months to begin to pay taxes to the government after which they would be treated as economic saboteurs and tax defaulters.
He stressed that after some months grace: “we will consider those who have failed to take advantage of this offer or who have declared falsely, to be willful tax defaulters and economic saboteurs. We will then proceed with aggressive investigation with a view to criminal prosecution. We will also publish a tax defaulters list to name and shame those refusing to do the right thing.”
Acting President Osinbajo who spoke today when he launched Voluntary Assets and Income Declaration Scheme (VAIDS) at the Presidential Villa Abuja said that VAIDS scheme will be operated from July 1st 2017 to 31st March 2018 and that it will be supported by an executive order that he signed into law today (Thursday).
According to him, VAIDS will offer a once in a lifetime opportunity to those in default
to regularise their tax affairs, adding that this is an offer in the spirit of national reconciliation and rebuilding that should be taken as such.
“ In addition, because we understand that some tax payers may have challenges raising tax. We have built in a system that will allow those owing to pay over a period of time, subject to conditions.
Professor Osinbajo made it clear that the issue of accountability for tax revenue is one that this
government is fully ready and able to address.
“In our war on waste and inefficiency at all levels, we have positioned ourselves to ensure that
tax revenues will be a driver of real lasting progress. Based on information on tax evasion that is now available, our personal preference is that those who have diverted Nigeria’s legitimate tax revenues abroad or concealed them at home, should taste the full force of the law.
“However the extent of noncompliance, coupled with the urgent need to revive the economy has persuaded all of our policy makers that we adopt the pragmatic approach of declaring a time
limited programme of the VAIDS.
He said that available data showed that many companies have distorted the ancient account concept of double entry and now maintain two or three sets of books; one for the tax man, showing low revenues and high expenses and another set showing the reverse, even as others collude with tax officials to fraudulently understate their obligations to government.
“Some have charged VAT and not remitted it to the FIRS. Others have deducted taxes from employees salaries and pocketed the sum.
“Tax evasion is of course not a uniquely Nigerian practice. Some multi nationals have used pricing and profit shifting to rob Nigeria of its share of the revenue generated within this nation.
“For the last fifteen months, a high level team has been working with the ministry of finance undertaking a major data mining exercise. The project was called project Light House and has been able to search various databases including but not limited to bank verification numbers.
“Corporate Affairs Commission, Nigerian Financial Intelligence Unit, land registry records, vehicle registration records, immigration and travel records and of course, whistle blowers tips to stop cash flows. The project has also engaged a retainership of one of the World’s leading asset tracing firms. Nigeria has also solicited and obtained input from various nations who have availed us with data under the many conventions and treaties we have signed. The project has been able to create accurate financial profiles of many thousands of Nigerian companies and individuals which shows levels of noncompliance. [myad]
