15 things to know about FG’s Tax Amnesty, VAIDS
Acting President Yemi Osinbajo on Thursday launched a Voluntary Assets & Income Declaration Scheme (VAIDS).
The scheme which takes off Saturday, is to encourage and provide an opportunity for eligible taxpayers to among other things regularise their tax status for all the relevant years.
The scheme is also meant to encourage taxpayers pay all outstanding taxes, prevent and stop tax evasion and ensure full tax compliance.
Below are 15 things every eligible tax payer should know about VAIDS:
1) The scheme (Amnesty) will last from July 1, 2017 to March 31, 2018.
2) VAIDS is supported by an Executive Order that signed into law by Acting President Yemi Osinbajo on June 29, 2017.
3) For the last 15 months, a high-level team has been working with the Federal Ministry of Finance on Project Lighthouse, which entailed gathering data from a wide range of sources to understand the degree of tax compliance in Nigeria.
4) Nigeria has a total of 69.9 million economically-active individuals but only 14 million of such people pay their tax. 96 per cent of them have their taxes automatically deducted through the Pay As You Earn (PAYE) system and 4 per cent comply by paying willingly.
5) Only 214 Nigerians pay 20 million Naira or more in taxes annually. All of them are based in Lagos State. Fewer than 1,000 pay N10 million Naira or more in taxes. All but two of these people are based in Lagos State.
6) The Federal Ministry of Finance, under the N-Power scheme is in the process of employing 7,500 Community Tax Liaison Officers (CTLOs), who will be trained to educate and sensitize citizens on the importance of paying tax and Nigeria’s tax system in general.
7) The Federal Government has declared every Thursday from June 29, 2017, #TaxThursday. This means that Thursdays have henceforth been set aside for tax enlightenment and awareness, and to welcome new taxpayers.
8) Nigeria is now party to the new global standard on Automatic Exchange of Information (AEOI), which kicks off 2018.
9) Upon the expiration of VAIDS, Federal Government will commence criminal prosecution of tax evaders who refused to take advantage of the income declaration scheme.
10) The Scheme is open to and targeted at all persons and entities that are in default of their tax liabilities in any way whatsoever.
11) To qualify for tax amnesty, an application/disclosure must be voluntary, complete, verifiable and the assessment of tax payable must be carried out by relevant tax authority.
12) Any taxpayer who truthfully and voluntarily declares his assets and income, 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.
13) Failure of any defaulting taxpayer to take advantage of VAIDS 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;
d. withdrawal of any reliefs, which may have been granted to the participant;
e. liability to undergo comprehensive tax audit; and
14) All information provided by the taxpayer under the Scheme shall confidential.
15) To get more on VAIDS, go to www.vaids.gov.ng
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.
13) Failure of any defaulting taxpayer to take advantage of VAIDS 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;
d. withdrawal of any reliefs, which may have been granted to the participant;
e. liability to undergo comprehensive tax audit; and
14) All information provided by the taxpayer under the Scheme shall confidential.
15) To get more on VAIDS, go to www.vaids.gov.ng
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