The Federal Ministry of Finance announced on Wednesday that over five Million corporate organizations and individuals’ data have been collected through the Voluntary Assets and Income Declaration Assets, (VAIDS).
The collated data will be subject to further analysis, to track and ensure all unpaid data are recovered.
The Ministry listed agencies are: Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Corporation (NNPC), Central Bank of Nigeria (CBN), Federal Airports Authority of Nigeria (FAAN), Federal Housing Authority (FHA), Petroleum Technology Development Fund (PTDF) and the Nigerian Communications Commission (NCC).
According to VAIDS office, the data collated from the agencies would be used to revealed companies yet to pay tax, based on income earned and also to identify the under-declared as well as Government agencies and corporate organization that collect taxes on behalf of the Government but fail to remit
What is VAIDS
On 29 June, the Vice President, Yemi Osinbajo formally launched the Voluntary Assets and Income Declaration Scheme (VAIDS), an initiative designed to encourage voluntary disclosure of previously undisclosed assets and income for the purpose of payment of all outstanding tax liabilities.
The Scheme is a 9-month Tax Amnesty starting from July and its aim at tax payers who have been falling short of their tax duties to declare their income and assets within and outside Nigeria as well as outstanding duties.
OBJECTIVES
The Federal Government disclosed that, in the 69.9 Million economically active Nigerians, 14 Million are taxpayers and 96% of them have their taxes deducted from the Pay As You Earn (PAYE) system.
It also revealed that only 214 Nigerians pay 20 Million Naira or more annually on taxes and fewer than 1,000 pay 10 Million Naira or more.
VAIDS is saddled with the responsibility of increasing the number of taxpayers and raise revenue for the Government.
The tax payer also benefits, as there will be no interest on overdue tax, no audit investigation, no prosecution for tax offences, and no penalties for willing declaration.
STRUCTURE
The legal basis of the Scheme is an executive order signed into law by the Vice President and is being implemented by the Federal Inland Revenue Service (FIRS) in collaboration with the 36 States Internal Revenue Service.
Also, taxpayer’s information will also be treated with utmost confidentiality.
AWARENESS
The Federal Ministry of Finance in partnership with 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 the Nigeria tax system in general.
Also, starting from July, every Thursday will be declared as “Tax Thursday” to enlighten and create awareness for new taxpayers.
NON COMPLIANCE
Any eligible taxpayer who fails to take advantage of the scheme till it expires will be prosecuted and is liable to:
1) pay in full, the principal sum due
2) liability to pay all interest and penalties arising therefrom
3) liability to be prosecuted in accordance with relevant extant laws for tax offences
4) withdrawal of any reliefs, which may have been granted to the participant
5) liability to undergo comprehensive tax audit; and
6) any sum paid in relation to the Scheme may be counted as part payment of any further outstanding tax in respect of undisclosed information.
