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| Acting President Osinbajo |
Acting President, Yemi Osinbajo on Thursday offered nine
months grace period to tax payers to regularise their tax status or face
criminal prosecution for tax offences.
Osinbajo made this known in Abuja at the inauguration of the
Voluntary Assets and Income Declaration Scheme (VAIDs).
He said the scheme was specially targeted at taxpayers, who
had not declared their taxable incomes and assets, as well as those who don’t
pay at all, and those who had been underpaying or under remitting.
Osinbajo said the scheme would cover all federal and state
taxes such as companies’ income tax, personal income tax, petroleum profit tax,
capital gains tax, stamp duties and tertiary education tax.
“The scheme will be operated from July 1, 2017 to March 31,
2018.
“It will be supported by an executive order, which I will
sign into law today to offer a once in a life time opportunity to those in
default to regularise their tax affairs.
“In exchange for full and honest declaration, tax evaders
will receive immunity from prosecution, forgiveness of penalty and interest
that is due on unpaid taxes.
“They will also get the full assurance that all information
provided will remain confidential.
“In addition, participants in the scheme will not be
selected for audit investigation for the period.
“We understand that some tax payers may have problems
raising cash and for that reason, we have built in a system that will allow
those owing to pay over a period of time.’’
According to the acting president, this is subject to
conditions.
Osinbajo said that those who failed to take advantage of the
nine months grace period would face criminal investigation and if found guilty
may face up to five-years jail term.
He said that the government would immediately commence a
nationwide sensitisation of Nigerians on the scheme and tax in general to
ensure compliance.
“To this end, we have agreed that every Thursday starting
from today, and for the next one year will be declared Tax Thursday.
“We expect the Federal Inland Revenue Service (FIRS) and
every state government to organise sensitisation events that would raise
awareness of the tax system to ensure massive enrolment of new tax payers.
“We must enroll at least 4 million tax payers and increase
the level of payment among the 14 million already registered tax payers.
“We expect that all state governors will personally lead
this initiative and support the work of the 7,500 community tax liaison
officers that would be employed shortly.’’
The acting president said that a high level team working
with the Federal Ministry of Finance was set up 15 months ago to research on
tax evasion and illicit financial flows.
He said the report of the team, which was tagged “Light House
Project” searched various data bases such as banks, Corporate Affairs
Commission, vehicle registration numbers and immigration to fish out tax
evaders.
On the international front, Osinbajo said; “Nigeria is now a
party to the automatic exchange of information which comes into effect in
January, 2018’’.
“This means that Nigeria will automatically have all the
information to successfully pursue tax evaders across the world.
“Specifically, we will have information on beneficial owners
of assets held abroad, including those in tax havens,” he said.
Meanwhile, the Minister of Finance, Mrs. Kemi Adeosun, said
that with the scheme, Nigeria hoped to increase tax to Gross Domestic Product
(GDP) of the country from six per cent to 30 per cent.
“If we pass this test, the future of Nigeria is assured,”
she said.
In his remarks, Sen. John Enoh of Cross River Central, who
represented the President of the Senate, assured of legislative backing to the
scheme.
He said the Senate would pass whatever legislation needed to
improve tax compliance in the country.
Similarly, the Chairman of Nigeria Governors Forum, Mr
Abudulaziz Yari pledged the state governments’ support and commitment toward
the new initiative.
Yari, who is also the Governor of Zamfara, said that state
governments would be the biggest beneficiary of revenues derived from the
scheme as they would give the FIRS necessary support.
A recent report of the Joint Tax Board showed that only 14
million people out of the estimated 69.9 million Nigerians, who are
economically active, are paying taxes.
Accordingly, 96 per cent of the 14 million have their taxes
deducted at source; this shows that they are government workers.
Also, only 214 Nigerians pay taxes of about N20
million annually and about 900 Nigerians pay N10 million as tax every year.
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