Acting President Yemi Osinbajo (SAN) will on Thursday, 29 June 2017 launch the Voluntary Asset and Income Declaration Scheme (VAIDS), outlining the Federal Government’s plan to increase tax awareness and compliance, and grant tax payers a time-limited opportunity to regularise their tax status without penalty.
A statement released by the Federal Ministry of Finance said the plan is to be executed jointly by Federal and State Governments, and it will concentrate on the national duty of all Nigerian companies and citizens to pay their taxes, wherever their income is earned, wherever they reside and no matter how rich they are.
Nigeria has a very low world ranking in tax-to-GDP ratio put at 6%; while tax evasion leaves an unfair burden of payment on those who can least afford it.
Kemi Adeosun, Minister of Finance said: “During the last eight years, Nigeria has failed to reduce its debt levels despite high oil prices and nominal GDP growth. We have inherited a situation where our debt and underdevelopment is getting worse not better. This cannot continue.”
“Neither can the behaviour of some of our richest citizens and multinationals operating in Nigeria – who seem to consider paying tax to be optional. From 2018, international law will make it easier than ever to track these evaders down and punish them.
International agreements, effective from 2018, make the exchange of banking information across borders, automatic. Nigeria has signed agreements with a number of nation (US, UK, Canada, UAE, Switzerland, Mauritius, Panama and Bahamas) – all of whom have pledged support and cooperation to exchange information on citizens that is relevant for tax purposes.
“This scheme is in line with similar initiatives launched during 2016 in India, Indonesia and South Africa. We know they work, we know it’s the right thing to do and the Treasury desperately needs the money. Finally, the proceeds of this scheme will not disappear. We will provide regular updates on the funds collected to date, and how those funds are being put to very transparent use, ” said Adeosun.
