The Federal government has expressed its readiness to not only expose, but also prosecute tax evaders that fail to utilise the tax amnesty programme – Voluntary Assets and Income Declaration Scheme (VAIDS) – to regularise their tax profiles, Minister of Finance, Mrs. Kemi Adeosun, has warned.
Adeosun also disclosed that the Federal government would strictly adhere to the confidentiality of the Automatic Exchange of Financial Account Information in Tax Matters, in line with the guidelines of the Organisation for Economic Cooperation and Development (OECD).
The Minister made this known at the VAIDS Stakeholders Symposium held at the Shehu Yar’Adua Centre, Murtala Square, Kaduna.
The sensitisation programme was attended by Governor Mallam Nasir el-Rufai; Accountant General of the Federation, Alhaji Idris Ahmed; Executive Chairman of the Federal Inland Revenue Service, Mr. Babatunde Fowler; members of the State Executive Council, captains of industries and business owners.
Adeosun said: “The Federal government has the political will and data to go after tax evaders who fail to take advantage of the tax amnesty programme.
“Many Nigerians cannot explain their lifestyles or match their lifestyles, assets and income with their tax payment.
“We will close VAIDS at the expiration of the programme on March 31, 2018. And once the programme is closed, we will name and shame and also prosecute tax evaders.”
On data sharing with foreign countries, the minister noted that the information sourced would strictly be used for tax purposes.
“The guideline requires that the automatic exchange of financial account information must be specifically designed with residence jurisdictions’ tax compliance in mind rather than be a by-product of domestic reporting for it to be effective,” she said.
She added that the automatic exchange of information had become necessary to combat tax evasion and protect the integrity of tax systems.
VAIDS, according to her, has been strengthened by the data on financial accounts, property and trusts shared by other countries.
She advised offshore asset owners to utilise the VAIDS window to regularise their taxes before the end of the amnesty programme.
“The offshore tax shelter system is basically over.
“Those who have hidden money overseas are being exposed and whilst Nigerians can legally keep their money anywhere in the world, they must first pay any taxes due to the Nigerian Government so that we can fund the needs of the masses and create jobs and wealth for our people,” she urged.
Kaduna State Governor, who disclosed that he declared his assets in 2017, commended the collaboration between the Federal and State Governments on tax.
He pledged to provide land ownership data to tax authorities at the Federal and State level, as part of measures to bring more income earners and asset owners into the tax net.