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Tag: Voluntary Assets and Income Declaration Scheme (VAIDs).

  • Low response to tax payment worries C’Rivers govt

    The Acting Chairman of the Cross River State International Revenue Service, Mr. Akpanke Ogar, has decried the poor response of the state to the Voluntary Assets and Income Declaration Scheme (VAIDS).

    The scheme, a Federal Government initiative launched in July, 2017, driven by the Federal Ministry of Finance and supported by the Joint Tax Board, provides the opportunity under a new tax amnesty programme to enable tax defaulters clear their outstanding tax liabilities for the previous six year accounting period.

    Speaking at a VAIDS sensitization forum in Calabar, Ogar said scheme has observed low participation in the state compared to results by other states in the country, hence the need for the sensitization forum.

    Read Also:Group seeks end to multiple taxation

    The IRS boss, who said nearly N30 billion has so far been recovered from the scheme for the Federal Government, said pointed out the Federal Inland Revenue Service (FIRS) has collected about 90 per cent of this amount, some states have been responsible for collecting the remaining 10 per cent, with Cross River contributing far less than 0.01 per cent.

    Ogar said the sensitization forum would be conducted for the three senatorial zones of the state.

    He said the Federal Government upon commencement of the initiative, had deployed 162 community tax liaison officers and four supervisors to the state to assist willing tax payers and members of the general public, process their documentation with the next three weeks.

    He said the tax amnesty initiative was initially for a nine-month period to end in March 2018, but was extended for another three months, hence would be ending June 30.

    Governor Ben Ayade, who was represented by the Commissioner for Finance, Mr. Asuquo Ekpeneyong, who lauded the state IRS for the initiative, said Nigeria loses a lot of tax money.

  • FG rakes in N30bn from VAIDS

    The federal government has raked in nearly N30 billion from tax the amnesty scheme, the Voluntary Assets and Income Declaration Scheme (VAIDS).

    Chairman Federal inland Revenue Service (FIRS) Mr. Tunde Fowler made this disclosure in Abuja Wednesday at the official presentation of VAIDS certificate of declaration to chairmen of states’ tax revenue authority,

    The VAIDS windfall Fowler said was championed by FIRS which was “responsible for the collection of 90% of the amount, while the states were responsible for the 10% collection balance.”

    The N30 billion so far mopped up from tax amnesty programme he said is N3 billion higher than previous N27 billion recovered few months ago.

    He reminded members of Joint Tax Board (JTB) that the beauty of VAIDS went beyond “financial gains but, rather its potential of expanding the tax net.” To this end he reiterated that the programme has also boosted the nation’s tax data base from 14 million to 19 million.

    Read Also:President Buhari extends VAIDS deadline to June 30

    The Voluntary Assets and Income Declaration Scheme (VAIDS) will terminate in three weeks’ time and speaking to the success of the programme, Fowler stated that the N30billion recovered so far was from both individuals and corporate bodies.

    According to Fowler, “looking beyond the financial returns of the scheme, the impact it has had in promoting voluntary compliance is unquantifiable. One of the outcomes of the scheme, whether directly or indirectly is the growth of the national tax payer database from under 14 million pre 2016 number to over 19 million in 2018, and we are confident that these numbers will translate into a positive growth in the country tax revenue to GDP ratio when the official percentage for 2017 have been released.”

    He expressed delight that some states have achieved significant progress in the scheme’s compliance, which explained why Executive Chairmen of revenue services of such states were invited to share their experiences.

    He admonished State Revenue Chairmen to constantly engage in enlightening tax payers about voluntary tax compliance as a way of building a friendlier tax environment.

    Fowler said VAIDS tax certificate presented to states is not the same with tax clearance certificate, saying one can’t replace the other.

    Aside from VAIDS, Fowler noted that “in recent times, the incidence of illicit financial flows, aggressive tax avoidance and outright tax evasion have come into the front burner. The international community, recognized the need to present a united front against this trend, which is a limiting factor in the quest towards exploiting the inherent potentials of tax as a viable alternative to sustainable revenue generation, especially for developing and emerging economies, have designed and is implementing a number of initiatives that will leave no hiding place for the tax evader”, said FIRS Chairman.

    As part of activities lined up to ensure increased awareness of the scheme in particular and tax compliance in general, staff of JTB Secretariat in collaboration with the federal ministry of finance will take part every Thursday in tax sensitization exercises in the states until the end of the scheme commencing from 14th June, 2018.

  • President Buhari extends VAIDS deadline to June 30

    President Muhammadu Buhari has approved the extension of the Voluntary Assets and Income Declaration Scheme ( VAIDS ) to June 30.

    The approval for the extension of the deadline is contained in a statement issued by the President’s Special Adviser on Media and Publicity, Mr Femi Adesina, in Abuja on Wednesday.

    According to the statement, the short extension after the original March 31 date is based on the appeals of professional bodies and individual taxpayers.

    The statement, however, maintained that no further extension of time will be approved after June 30.

    It stated that a new date was also given, based on the conviction of the Ministry of Finance that the overall objective to increase compliance will be attained, and additional revenue will accrue.

    It said that a Fresh Executive Order would be made to give legal backing to the new timeline.

    “For a nation of people who are competitive and driven, it is not a pride that we are the lowest performer in tax to GDP, not just in Africa, but in the world.

    “Nigeria’s growth needs are such that every Nigerian must do his duty to his nation, to his neighbour, and to himself.

    “Hiding monies overseas, evading taxes by manipulation, and other unwholesome practices, have never developed a country, and for Nigeria to attain her true potential, these must stop,’’ President Buhari was quoted as saying in the statement.

    Read Also: Protest as Buhari arrives in London

    The President urged Nigerian companies and individuals to join government in the rebuilding mission, “and do the right thing by taking this window of extension to regularize.”
    He added that the right thing may not be convenient or comfortable, “but in the long run, we will all have a nation we can be proud of.”

    President Buhari further urged tax authorities to use the extension window to perfect plans to prosecute those who fail to regularize their tax status.

    VAIDS is one of the key policies being used by the Federal Government to reposition the Nigerian economy and correct inherited underdevelopment.

    The country has one of the lowest tax collection rates in the world at just six per cent of GDP. This was partially a function of the reliance on oil that saw us abandon the historical revenue collection systems and switch to a culture of sharing resources, rather than generating them.

    President Buhari had in 2017 inaugurated the Economic Recovery and Growth Plan ( ERGP ), and the VAIDS tax amnesty is first in the series of reforms that will transform our tax system and provide sustainable predictable funding for all tiers of government.

    Tax revenues will ensure that public infrastructure is provided, and public services are funded to improve the lives of the people.

    NAN

  • VAIDS: Buhari under pressure to extend tax amnesty period

    As the tax amnesty under the Voluntary Assets and Income Declaration Scheme ( VAIDs ) ends on Saturday, some private sector players are said to be lobbying President Muhammadu Buhari to extend the amnesty period.

    An official at the Presidency, who craved for anonymity, told our correspondent on Friday that governors and company owners had called the President and Vice President to push for the extension of the programme.

    “We are expecting Mr President to make an announcement on the tax amnesty deadline by this weekend.

    “To be frank and honest, nobody knows whether the President will decide to extend it or not, but there has been calls by state governors and key private sector players calling for the extension.

    “However, it still remains unclear if the President will take the recommendation to extend it by another three months, since he had been advised otherwise by the Minister of Finance and Federal Inland Revenue Service ( FIRS ) chairman,” the source said.

    Meanwhile, the Adamawa state Commissioner for Finance, Mr Mahmoud Yunusa, told our correspondent that many of the states were in support of extending the tax amnesty past the March 31 deadline.

    “It should be extended because people are just beginning to buy into the programme. We see people coming up willingly to declare their assets and it shouldn’t end soon.

    “Nigerians deserve more time and I believe that some of them are still collating their assets to know their worth before doing so.

    “Also, some haven’t declared because they operate businesses without any formal documentation so it will take time before they get their books in order.

    “So it’s my opinion that extending it for another six months would ensure better success,’’ he said.

    Yunusa lauded the programme, saying that in Adamawa State, it had helped the state to improve its Internally Generated Revenue ( IGR ) by more than 200 per cent despite still recovering from insurgency and recession.

    Also, Mr Tunde Dare, an economist, held the view that the VAIDs programme should be extended.

    “Even though I think the programme should be extended, I think the government went about this business of tax amnesty the wrong way.

    “I think the scheme should be aimed at capturing more people into the scheme without asking them to pay backlog of taxes,” he said.

    Meanwhile, on Thursday, which was the last working day before the expiration of the programme, many accountants and lawyers stormed the offices of the FIRS to submit applications of their clients.

    We gathered that many tax defaulters, who had thought that the amnesty programme would be extended, were making last minute efforts to key into the scheme.

    The VAIDs programme was launched on July 1, 2017 and was expected to last for nine months.

    The government threatened to prosecute tax evaders that do not take advantage of the scheme thereby risking imprisonment of up to five years.

    According to the Minister of Finance, Mrs Kemi Adeosun, the Federal Government had the political will as well as the means to gather evidence that will enable it to prosecute tax evaders.

    She once said that using Project Lighthouse, a data mining agency, the government had been gathering information from different sources to enable it to identify and properly prosecute tax evaders after the expiration of the deadline.

    She said information had so far been gathered from Bank Verification Number records, engagement with foreign private investigation firms on a retainership to trace assets of Nigerians abroad.

    Also, the Federal Government plans to use the Nigeria Financial Intelligence Unit records and land ownership records in locations like Maitama, Asokoro, Garki, Wuse, Banana Island, Magodo, Lekki, Ikoyi, and Victoria Island.

    The government further plans to beam its searchlights on people that over the years have received major payments from it or foreign exchange allocation and also people with private jets.

    Also, the Federal Government have agreements with many foreign governments like the United Arab Emirates and United Kingdom to get records of Nigerians with property there.

    The government also threatened to go after Nigerians who frequent tax havens as mentioned in the panama paper leaks.

    NAN

  • Tax evasion: Fed Govt, States, go after property owners

    Tax evasion: Fed Govt, States, go after property owners

     

     

    The federal government on Monday extended its searchlight on tax evaders with properties in highbrow areas of the country.

    The federal government had on July 1, 2017 granted tax payers a nine months grace period to regularize their tax statuses under the Voluntary Assets and Income Declaration Scheme (VAIDS).

    Monday, an informed source in the Presidency told journalists that the federal government through its data mining agency “Project Lighthouse” had received documents on property owners across the country from state governments.

    The first set of property owners that will come under scrutiny for tax compliance are owners of properties in Maitama, Asokoro, Garki ll, Wuse ll in the Federal Capital Territory (FCT) and those in Banana Island and its environs, Magodo, Lekki, Ikoyi in Lagos state.

    The source revealed that tax records and bank account details of these property owners are being reviewed by the team of “Project Lighthouse.”

    The source revealed that “the extension of the searchlight on these property owners is not unconnected with Illicit Financial Flow (IFF). Most of these people are diverting their incomes to properties and are not paying taxes.”

    It was further disclosed that some state governments in collaboration with the federal government have provided electronic searchable data base for both individual and corporate property owners with the following key information: Name of owner, plot number, location and Certificate of Occupancy (CofO) number.

    It was also revealed that the federal government is also extending the searchlight to the other northern states, the south east and the south-south regions.

    The decision to go after highbrow property owners the source said is because “it has been observed that most of the tax payers life style does not reflect in their tax payment.”

    Last week, the federal government vowed to name, shame and prosecute tax evaders from April 1, 2018. Under the VAIDS programme, state governments will be major beneficiaries of the programme because after the recovery, the money will go to the states, which is why the states are cooperating with the federal government on the scheme.

  • VAIDS: FG recruits 2190 tax officers – Adeosun

    VAIDS: FG recruits 2190 tax officers – Adeosun

    The Federal Government has recruited and trained 2,190 Community Tax Liaison Officers (CTLOs) under the Voluntary Assets and Income Declaration Scheme (VAIDS), says the Minister of Finance, Mrs Kemi Adeosun.

    Adeosun, in a statement by her Special Adviser, Media and Communications, Mr Oluyinka Akintunde, said that 1,710 CTLOs had already been deployed to 33 states, out of the number recruited and trained.

    She said that their task was to raise awareness about the scheme and taxation in general.

    She said that the CTLOs were currently operating in Adamawa, Cross River, Delta, Edo, Enugu, Kaduna, Kwara, Lagos, Nassarawa, Niger, Ogun and Oyo states among others.

    Adeosun said there was no hiding place for tax evaders residing in Nigeria or abroad, noting that the Federal Government had put in place a data mining mechanism to fish out evaders.

    “The unique cooperation between the various arms of Federal Government, state governments and foreign governments has provided an unprecedented level of data that allows the Nigerian Government to profile taxpayers accurately.

    “We are now able to identify those whose lifestyle and assets are not consistent with their declared income.

    “A lot of data mining is going on daily, both locally and internationally, on property ownership and other items. Data is an extremely powerful tool that is now being utilized.

    “For instance, we have reviewed all companies that received major payments from the Federal Government in the last 5 years and found that even those who made money from government, under-declared,” she said.

    Adeosun said that the tax compliance team had looked at import records and compared the value of goods imported to the tax declarations of the importers, but the discovery was worrisome as “the variance was disturbingly wide”.

    “On personal income taxes, we reviewed property and company ownership as well as registration of high value assets and foreign exchange allocations, which gives us a sense of the lifestyles of the persons.

    “But again, we found major non-compliance. In some cases, people declared as little as N10 million as income but purchased expensive property overseas and in Nigeria.

    “They also registered high specification vehicles and funded luxurious personal events costing multiples of the declared income,” she said.

    Adeosun said that now, with the centralisation of data under Project Lighthouse within the Federal Ministry of Finance, a major tax loophole has been plugged.

    She reiterated the willingness of the Federal Government to prosecute tax evaders after the tax amnesty period had elapsed.

    Adeosun also said that the Federal Government had compiled a list of 500 prominent Nigerians with property and trusts abroad, to determine their tax compliance status.

    The 500 prominent Nigerians, according to her, will receive their letters beginning from Monday, asking them to take advantage of the tax amnesty to regularise their tax status and avoid prosecution and fines.

    VAIDS, an initiative of the Federal Ministry of Finance in collaboration with the State Tax Authorities, is a revolutionary programme that provides tax defaulters a nine-month opportunity to voluntarily and truthfully declare previously untaxed assets and incomes.

    The tax amnesty period is expected to lapse on March 31, 2018.

    Job creation is one of the spin-offs of the VAIDS initiative, with the scheme expected to create 7,500 opportunities for Nigerians as CTLOs through the N-Power scheme of the Federal Government.

     

  • Plateau launches voluntary assets, income declaration scheme

    Plateau launches voluntary assets, income declaration scheme

    The Plateau Government on Thursday formally launched the Voluntary Assets and Income Declaration Scheme (VAIDS) to achieve massive Internally Generated Revenue (IGR).

    Mrs Tamwakat Weli, the state Commissioner for Finance who formally launched the scheme in Jos, appealed to tax payers to take advantage of the scheme to do the right thing.

    “VAIDS is a time limited opportunity for tax payers to regularise their status relating to tax periods in exchange or fully and honestly declaring previously undisclosed assets and interests without facing any penalty.

    “It’s the assurance that they will not face criminal prosecution for tax offences or be subjected to tax investigations simply because an amnesty window has been opened to all Nigerians by this scheme,’’ he said.

    Weli said that the scheme covered all federal, states and local governments income tax, personal income tax and tertiary education tax, among others.

    According to her, “tax payers especially defaulters, have a period of nine months within which to do the right thing in paying right tax as to their incomes and assets as there shall be no extension from March 31, 2018.’’

    She said that since the inception of Gov. Simon Lalong’s administration, the state had been collaborating with the Federal Government to  boost its IGR.

    The commissioner explained that once the government had a robust IGR, it would be able to finance its activities and bring the much needed development to the state.

    He said that the new scheme would assist tax administrators in the state to carry out seamless tax collection while improving on the existing friendly interface between them and tax payers.

    Earlier, Mr Dashe Arlat, PSIRS Chairman, pledged the readiness of his staff to ensure that tax payers in both formal and informal sector were captured in PSIRS data for full compliance.

    He said that the launching of the scheme was timely and would boost revenue.

  • Tax payers get nine months reprieve to regularise tax status

    Tax payers get nine months reprieve to regularise tax status

    The federal government has granted tax payers nine months grace to regularise their tax status or face prosecution.

    Acting President, Yemi Osinbajo made this declaration Thursday in Abuja at the launch of the Voluntary Assets and Income Declaration Scheme (VAIDs).

    The grace period will be observed from July 1, 2017 to 31, March, 2018.

    Osinbajo said the scheme is “specially targeted at taxpayers who have not been fully declaring their taxable income and assets, those who don’t pay at all and those who have been underpaying or under remitting.”

    According to Acting President Osinbaj, “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.”

    Osinbajo added that “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.”

    The Acting President noted that “tax payers 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 cover.”

    Also the federal government he said understands “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, subject to conditions.”

    However, those who fail to take advantage of the nine month grace period, would face criminal investigation and if found guilty might face up to five-year jail time.

    Osinbajo said that the government would commence a nationwide the sensitisation of the scheme and tax in general to ensure compliance, noting that “to this end, we have agreed that every Thursday starting form today and for the next one year, will be declared Tax Thursday.”

    The Acting President said government “expects the FIRS and every state government to organise sensitisation events that would raise awareness of the tax system and will result in massive enrollment 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 7500 Community Tax Liaison Officers that would be employed shortly.”

    On the international front, Osinbajo said “Nigeria is now party to the Authomatic 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”.

    Speaking at the event the Minister of Finance, Mrs Kemi Adeosun said that with the scheme, Nigeria hopes to increase tax to GDP of the country from 6 per cent to 30 per cent. “If we pass this test, the future of Nigeria is assured,” she said.

    A recent report of the Joint Tax Board, revealed that only 14 million people out of the estimated 69.9 million Nigerians, who are economically active, pay tax.

    According to the report, “96 per cent of the 14 million, have their taxes deducted at source, meaning they are government workers. Only 214 Nigerians pay taxes of about N20 million annually and about 900 Nigerians pay N10 million as tax every year” the report disclosed.