₦airaland Forum

The Minister of Finance, Mrs Kemi Adeosun has urged Companies and individuals in doubt as to the authenticity of their Tax Clearance Certificates to take advantage of the Voluntary Assets and Income Declaration Scheme (VAIDS) to regularise as all Ministries, Departments and Agencies of government (MDAs) and the Federal Inland Revenue Service (FIRS) have been mandated to authenticate all Tax Clearance Certificates (TCCs) presented by companies and individuals engaged in public procurement processes.

This directive is in response to the proliferation of forged TCCs purportedly issued prior to the automation of the certificates from 22nd August, 2017. The validation of the TCCs will enhance the integrity of the tax system. A Circular issued on Tuesday by the Honourable Minister of Finance, Mrs. Kemi Adeosun, requires the MDAs to authenticate all TCCs prior to making any payment. Electronic TCCS (e-TCCs) can be verified via logging into https//tcc.firs.gov.ng and taking the following steps: click on verify e-TCC, enter the TCC number and complete the captcha, and click on submit to view the TCC number entered.

For TCCs issued before 22nd August, 2017, the Circular advised the MDAs and other stakeholders to forward a list of the companies and photocopies of the TCCs to the office of the Executive Chairman, FIRS for authentication. The FIRS has undertaken to verify the TCCs within 72 hours of receipt.

The Minister reminds Company Directors that possession is an offense and that the Federal Ministry of Finance and the FIRS will continue to work in partnership with government at all levels and stakeholders towards eradicating tax fraud and evasion.

The Federal Government, it will be recalled, had in January 2018 directed vendors of MDAs to display their Tax Identification Numbers (TINs) on their invoices before payments are effected. The non-presentation of a TIN by the vendors largely contributed to leakages in revenue remittances, particularly Value Added Tax (VAT) and Withholding Tax (WHT).

The Chairman of the Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, said the Federal Government had recovered about N30 billion from individuals and corporate establishments through the tax amnesty scheme during the unveiling of the VAIDS Declaration Certificate in Abuja at a Workshop organized for chairmen of States’ Inland Revenue Service.

According to him, 90% of the amount was collected by the Federal Inland Revenue Service (FIRS), while the remaining 10% was recovered by the States.

Fowler, who is also the Chairman of the Joint Tax Board, also stated that the national taxpayers’ database had increased from 14 million in 2016 to over 19 million in 2018.

He expressed optimism that the number would translate into a positive growth in the country’s Tax Revenue to GDP ratio.

He commended many States of the federation whom he said have achieved significant success in implementing the tax declaration policy, and urged the various tax administrators to adequately educate, enlighten and sensitize taxpayers to be fully alive to their tax obligations.

The Federal Government has approved the issuance of a Declaration Certificate to taxpayers under the Voluntary Assets and Income Declaration Scheme (VAIDS).

The Declaration Certificates, which was approved by the Minister of Finance, Mrs. Kemi Adeosun, are to be given to taxpayers who voluntarily declared their previously undisclosed assets and income.

The Chairman of the Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler, unveiled the VAIDS Declaration Certificate on Wednesday in Abuja at a Workshop organised for chairmen of States’ Inland Revenue Service.

Fowler disclosed that the certificate was customised for each State tax authority with several security features and would be issued to the taxpayers upon submission of their declaration forms.

Speaking shortly before unveiling the VAIDS Declaration Certificate, Mr Fowler said the Federal Government had recovered about N30 billion from individuals and corporate establishments through the tax amnesty scheme.

According to him, 90% of the amount was collected by the Federal Inland Revenue Service (FIRS), while the remaining 10% was recovered by the States.

Fowler, who is also the Chairman of the Joint Tax Board, stated that the national taxpayers’ database had increased from 14 million in 2016 to over 19 million in 2018.

He expressed optimism that the number would translate into a positive growth in the country’s Tax Revenue to GDP ratio.

He commended many States of the federation whom he said have achieved significant success in implementing the tax declaration policy, and urged the various tax administrators to adequately educate, enlighten and sensitise taxpayers to be fully alive to their tax obligations.

President Muhammadu Buhari has approved the extension of the Voluntary Assets and Income Declaration Scheme (VAIDS) to June 30, 2018.

The short extension after the original March 31 date is based on the appeals of professional bodies and individual taxpayers.

However, no further extension of time will be approved after June 30.

The President added 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.

A fresh Executive Order will be made to give legal backing to the new timeline.

According to President Buhari, "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."

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 6% 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 last year launched 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.

Taxes redistribute wealth from those who have more to those who have less, and VAIDS is one of the windows to achieve such.

Efforts to ensure that citizens comply with the Voluntary Assets and Income Declaration Scheme (VAIDS) before the March 31st deadline have ramped up in the last few weeks.Taxpayers all over the country have been encouraged to regularise their tax status by taking advantage of the penalty-free scheme which began on the 1st of July 2017. To this end, Kadaria Ahmed hosted the Honourable Minister of Finance, Mrs Kemi Adeosun, the Executive Chairman of the FIRS, Mr Tunde Fowler, as well as analysts, members of the press and an online audience, in a televised panel discussion on the program, The Core, which aired on Channels Television at 8pm on Wednesday the 7th of October, 2018.


The Honourable Minister stated that only 6% of Nigerian citizens currently remit tax, a staggeringly low statistic that the scheme is determined to increase. When questioned about the sustainability of the tax scheme — especially considering that these tax laws have always been in existence, but have hitherto been unenforced — shestated that the increase in the availability of datavia national schemes, such as the BVN and the Automatic Exchange of Information Scheme with the United Kingdom and other participating countries has made it easier to track incomes and assets owned by Nigerians who reside in Nigeria and have assets both within and outside the country.

Questions were also raised concerning the use of the data gathered, and the challenge of corruption within the MDA’s, who often collect taxes but don’t remit them.

Executive Chairman of the FIRS, Mr Tunde Fowler, assured the audience that the data collected is strictly confidential. He also stated that the FIRS has invested largely in technology, and that the agency is looking into implementing cashless tax remittance to minimise leaks and increase efficiency of tax collection.

“For me, this is about building Nigeria,” stressed the Minister of Finance, “We must stop relying on oil. This is one of the things we must get right, and it could transform this country.”

The VAIDS scheme extends to corporates, individuals, agencies, MDA’s and business owners alike, and there will be penalties for all entities who do not take advantage of the amnesty period, which ends on the 31st of March, 2018.

The Federal Ministry of Finance data mining project called “Project Lighthouse” has identified a new batch of more than 130,000 high net worth Nigerian individuals and companies that have potential tax underpayments.

According to the Minister of Finance, Mrs Kemi Adeosun, this information was compiled in preparation for the closure of the Voluntary Assets and Income Declaration Scheme on March 31, 2018.

“We’ve collected the data from a number of sources including land registries of the Governments of Lagos, Kaduna, Kano & Ogun States as well as the Federal Capital Territory. We‘ve also been able to request and receive data from a number of nations including traditional tax havens,” she said.

The Minister further stated that the Automatic Exchange of Information is being used to mine data overseas. Under the Automatic Exchange of Information (AEI), information relating to bank records and financial filings for tax purposes is obtained from tax havens like British Virgin Islands, Mauritius and other participating countries that are signatories to Information exchange agreements.

The Automatic Exchange of Information makes it possible for participating countries to exchange financial information of individuals and companies that are residents of another participating country for tax purposes.

Mrs. Adeosun reiterated that the data coming from abroad will be used ONLY for taxation purposes in line with the protocols governing the exchange of information. “Our only interest in the data is in raising tax revenues. There‘s no hidden agenda whatsoever on the use of the data,” she said.

The Honourable Minister of Finance, Mrs. Kemi Adeosun, has advised tax payers to demand for written notice when they receive phone calls from tax officials.

She gave this advice in response to the activities of some fake tax officials alleging to be officials of the Voluntary Assets and Income Declaration Scheme (VAIDS).

In a statement on Sunday, the Minister said, “My attention has been drawn to reports of some unidentified tax officials requesting for bank details and address of tax payers.

“If you receive a phone call from someone claiming to be from the Tax Office, do not panic. Ask them to send you a written notice. Do not provide any details like your address or bank details,” she urged.

Meanwhile, the Executive Governor of Kaduna State, Mallam Nasir el-Rufai and the Minister of Finance, Mrs. Kemi Adeosun, has honoured a consistent tax payer, Elder Lema Jibrin.

Jibrin was honoured during the Voluntary Assets and Income Declaration Scheme (VAIDS) Sensitisation programme in Kaduna last Thursday.

The Kaduna State Governor noted that Jibrin had consistently paid tax to the government for 40 years.

“Elder Lema Jibrin, the Dan Iyan Katsina, is the most tax compliant Nigerian. He has been paying his taxes consistently for 40 years and has not relented or evaded the payment of taxes,” el-Rufai said.

Adeosun praised Elder Jibrin for his consistency and diligence in tax payment, and urged tax payers to utilise the amnesty programme of the Federal Government to regularise their tax profiles.

The Federal Government is ready to prosecute, name and shame tax evaders that fail to utilise the tax amnesty programme, the Voluntary Assets and Income Declaration Scheme (VAIDS), to regularise their tax profiles, the Honourable Minister of Finance, Mrs. Kemi Adeosun, declared on Thursday.

She 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 Umaru Shehu Yar’Adua Centre, Murtala Square, in Kaduna State.

The sensitisation programme was attended by the Executive Governor of the State, 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 stated that the Federal Government had the political will to prosecute tax evaders once the tax amnesty programme was over by March 31, 2018.

She 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.

The 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.

The 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.

The Governor assured that the revenue from taxes would be judiciously used in improving the lives of residents of the State through investment in infrastructure, primary health an education.

The FIRS Executive Chairman reinforced the need for Nigerians to join hands with the Federal and State Governments to improve the standard of living through compliance with tax payment.

Executive Governor of Kaduna State, Mallam Nasir el-Rufai and the Honourable Minister of Finance, Mrs. Kemi Adeosun, will on Thursday, March 1, meet with business leaders, business owners and tax payers in Kaduna over the Voluntary Assets and Income Declaration Scheme (VAIDS).

The Kaduna State Government is hosting the VAIDS Stakeholders’ Symposium, which is expected to have in attendance Executive Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler; members of the State Executive Council, members of the State House of Assembly and traditional rulers.

Also invited to the sensitisation meeting are business owners and groups, tax advisers, captains of industries, professional and artisan bodies, and other strategic economic groupings within Kaduna State and environs.

The Minister of Finance, Mrs. Kemi Adeosun, has identified regular tax payment by Nigerians as fundamental to the growth and development of the country.

She noted that predictable tax revenue inflow would lead to more investment by the Federal and State Governments in infrastructure and job and wealth creation across the nation.

“Payment of taxes is a fundamental requirement for our growth story. Nigeria has a very poor scorecard in tax payment. When oil came, we abandoned the old systems of tax collection that provided most of our infrastructure since colonial days.

“Currently, we have just 14 million tax payers out of 70 million who are economically active. So, many people who should be paying are not paying anything. It is the development of taxes that will help the States and the Federal Government to achieve their true potentials,” the Minister said.

She advised tax payers to take advantage of the tax amnesty opportunity to regularise their tax profiles, adding that tax defaulters would be subjected to investigations as well as made to face criminal prosecution for tax offences.

The VAIDS programme, which commenced on 1st July, 2017, provides opportunity for tax payers to voluntarily and truthfully declare their assets and incomes before the March 31st, 2018 deadline.

The Scheme embraces all Federal and State taxes such as Companies Income Tax, Personal Income Tax, Petroleum Profits Tax, Capital Gains Tax, Stamp Duties, Tertiary Education Tax, Technology Tax, Tenement Rates, and Property Taxes.

It also covers all back taxes for the last six years in line with the statutory periods of limitation under the relevant tax statutes.

What does true love mean to you? Is it when that someone special buys you something expensive for Valentine or when the person takes you to an exquisite restaurant or holiday resort to celebrate the day? True love means a lot of things to people.

VAIDS is offering you true love that goes beyond Valentine day. It runs till the 31st of March 2018. It's an opportunity to declare your love for Nigeria and getting loved in return. By declaring all your assets and income and regularizing outstanding tax liabilities, you express your love for the Nigeria. In return, VAIDS is allowing you do this without any consequences. No penalty fee, no audit and no prosecution. Where else can you experience this kind of love?

Take advantage of VAIDS's love now to do the right thing for the country you love and in return, you experience true love.Visit vaids.gov.ng to experience this love.

The Voluntary Assets and Income Declaration Scheme (VAIDS) team led by the Honourable Minister of Finance, Mrs. Kemi Adeosun paid a visit to Enugu State Government last Thursday. The team was welcomed by the Executive Governor of Enugu State, Rt Hon. Ifeanyi Ugwuanyi. In attendance were the Accountant General of the Federation, Ahmed Idris, Speaker, Enugu State House of Assembly, Rt. Hon. Edward Ubosi, Chairman of Enugu State Traditional Rulers Council, HRH Igwe (Amb) Lawrence Agubuzo, Enugu State Commissioners and several stakeholders.

According to the Minister of Finance, if we are serious about building a nation where current & future generations can build lasting development & prosperity, we must embrace our tax obligations.

"By regularly paying taxes, we will avoid the pain that the recent oil price collapse, and the consequent recession inflicted on Nigerians. We will avoid boom-and-bust cycles and join those nations that have predictable revenues and see progressive improvements in citizens' lives," she further stated. She encouraged everyone to embrace VAIDS and voluntarily declare their assets and income before the scheme ends.

Governor Ifeanyi Ugwuanyi appreciated the Federal ministry of Finance for bringing the VAIDS initiative to Enugu State and highlighted some of the remarkable feats that have been achieved through taxes. He encouraged all tax payers in Enugu to continue the good work in developing the state.

The Voluntary Asset and Income Declaration Scheme is a time-limited opportunity for taxpayers who are in default with their Nigerian tax liabilities to pay the tax due from them relating to previous tax periods and declare all previously undisclosed assets and income. This enables them to regularise their transactions and get Nigerian tax clearance for all the relevant years without fear of criminal prosecution and with the benefit of waiver on penalty charges.

It was another enlightening VAIDS training session in the beautiful Coal city of Enugu. The event had in attendance dignitaries and participants from all works of life.

The 1-Day Training Workshop themed "Advising your clients on VAIDS" is for professionals that wish to learn more about this tax amnesty scheme and how to take advantage of it.

The Voluntary Asset and Income Declaration Scheme is a time-limited opportunity for taxpayers who are in default with their Nigerian tax liabilities to pay the tax due from them relating to previous tax periods. This enables them to regularise their transactions and get Nigerian tax clearance for all the relevant years without fear of criminal prosecution and with the benefit of waiver on penalty charges.

If you're in Rivers, Kano and Enugu State, here's your chance to learn more about our Voluntary Assets and Income Declaration Scheme (VAIDS) at our 1-day training workshop taking place on the 16th (Port Harcourt), 23rd (Kano) and 30th (Enugu).

This training is for Professionals, Tax consultants, Accountants, Lawyers, Assets and Fund Managers who seek in-depth clarification about our Tax Amnesty Scheme and also to provide advice to their clients interested in regularizing their tax affairs.

Entry is free but you have to register here: https://www.surveymonkey.com/r/vaidsworkshops

The Voluntary Asset and Income Declaration Scheme is a time-limited opportunity for taxpayers who are in default with their Nigerian tax liabilities to pay the tax due from them relating to previous tax periods. This enables them to regularise their transactions and get Nigerian tax clearance for all the relevant years without fear of criminal prosecution and with the benefit of waiver on penalties.

The Voluntary Assets and Income Declaration Scheme (VAIDS) partnered with the Chartered Institute of Taxation of Nigeria to address issues of tax compliance among celebrities and other stakeholders in the Nigerian Entertainment Industry.

The event which took place yesterday at the Oriental Hotel, Lagos, had in attendance the Executive Chairman of FIRS, Mr. Babatunde Fowler, Mrs. Oluwatoyin Campbell, Chairman, CITN, Chairman of LIRS, Mr. Ayo Subair, several guest speakers, entertainers and other stakeholders in the entertainment industry.

The event created an avenue for all stakeholders to meet and address key issues regarding tax compliance, tax amnesty (VAIDS), confidentiality on asset declaration, benefits of tax revenue to the entertainment industry and the role of celebrities as social influencers. It also provided an avenue for celebrities and High Net-worth Individuals to air their concerns about our Tax Amnesty scheme (VAIDS) and seek further clarification on how to take advantage of our scheme.

The training workshop for professionals themed "Advising Clients on Participation in the Voluntary Assets and Income Declaration Scheme" held yesterday at the Federal Palace Hotel, V.I, Lagos.

The event conducted by the Ministry of Finance had in attendance the Honourable Minister, Mrs Kemi Adeosun, Executive Chairman of Lagos and Ogun State Revenue Service, Mr Ayodele Subair and Mr. Kunle Adeosun. The event also had in attendance dignitaries and participants from several works of life.

Our Facilitators included Prof. Abiola Sanni, Professor of Law, University of Lagos, Mr. Yomi Olugbenro, Lead Partner, Tax and Regulatory Services, Deloutte, Mr. Peter Ukonu, Financial Derivatives Company, Mr. Ayo Salami, Tax Partner, KPMG, Mr. Taiwo Oyedele, Partner PWC and Mr. Albert Folorunsho, Partner Pedabo. Insights on the legal framework of VAIDS, the implication of the Automatic Exchange of Information for Nigeria, data mining and practical guidelines for participating in this tax amnesty scheme were provided by our Facilitators

The Voluntary Assets and Income Declaration Scheme (VAIDS) is an initiative designed to encourage voluntary disclosure of previously undisclosed assets and income for the purpose of payment of all outstanding tax liabilities. The workshop deployed a participatory approach in which different scenarios were used to teach different categories of professional participants their specific roles and expectations from the Federal Ministry of Finance.

Good News to everyone in Lagos! If you've been trying to properly comprehend what the Voluntary Assets and Income Declaration is all about, you are in luck! You can now attend the Federal Ministry of Finance 1-day training workshop on our tax amnesty scheme themed "Advising your clients on VAIDS."

The Voluntary Assets and Income Declaration Scheme (VAIDS) is an initiative designed to encourage voluntary disclosure of previously undisclosed assets and income for the purpose of payment of all outstanding tax liabilities. The workshop will deploy a participatory approach in which different scenarios will be used to teach different categories of professional participants their specific roles and expectations from the Federal Ministry of Finance.

If you are an Accountant, Wealth/Asset Manager, Tax Adviser, Banker and Lawyer or you just want to know more about our scheme, this workshop is for you. Date is 24th November, 2017 at Balmoral Hall, Federal Palace Hotel, V.I, Lagos. Attendance is free, but you have to register here: https:///forms/9EI1hDt89XvU9DBw2 Limited spaces available.

Hello, you are taxed on income generated. If you earn salary from your private firm, you already have tax deducted from your salary.Except you have other sources of income that you haven't declared.

You have made a valid suggestion and we look forward to discussing in details how VAIDS can be beneficial to us all, the need for tax compliance and how this present administration is ensuring accountability for every revenue generated.

[You have made a valid suggestion and we look forward to discussing in details how VAIDS can be beneficial to us all, the need for tax compliance and how this present administration is ensuring accountability for every revenue generated.]




I think you have raised valid questions but this approach will not work
The law requires that you pay tax whether or not your road is taxed. You cannot link provision of service to tax payment
That is the law
As an individual, if they zero in on you, no matter your postings on Nairaland, there is nothing you can do

My suggestion is that since they have come to Nairaland to campaign for tax payment, then let there be a thread which will be operated like a conference. Let all the VAIDS people (FIRS, Office of VP, Minister of Fin etc) join in (they can have one person responding on Nairaland) and let a team of Nairalanders be on the other side.

Nairaland should undertake to declare their assets and income and commit to getting others to do so. But the government must in return do
1, 2, 3, 4

And then the meeting should agree on how to enforce compliance by both sides

I believe collective negotiation is the only way to extract a promise from the government. Again, remember nobody can individually engage the government on tax matters if s/he is in defalut[/quote]

Social media sensation, J.O is a popular entertainer who regularly undertakes live bookings at weddings. He lives a very lavish life, owns expensive watches, vehicles and recently bought a new property in Lekki which was valued at N50 million. J.O hired an accountant to handle all his tax affairs on his behalf; his accountant made filings to the revenue service agency and is expected to pay N1 million per annum as tax.

In 2015, J.O was booked to sing at a wedding in London for which he charged £10,000 and then proceeded on a European and American music tour which netted him over $50,000. However, J.O did not declare any of this additional income.

This is a common occurrence among entertainers, and Nigerians in general who earn money offshore. In a bid to encourage people like J.O to declare all their assets and income and regularize their tax status, the Federal Government launched the Voluntary Assets and Income Declaration Scheme (VAIDS).

The scheme allows individuals to voluntarily declare all their assets and income, and also pay their outstanding tax liabilities without the usual penalties and interest charges. Neither will they be subjected to prosecution or tax audit. The scheme which started on the 1st of July 2017 will run till the 31st March 2018.

Tax payers that declare between 1st July and 31st December, 2017 will enjoy waivers from interest or penalty charges and won’t face prosecution or tax audit. Those that declare between 1st January to 31 March 2018 will face no prosecution, tax audit and won’t have to pay penalty charges, but interest will be payable in full.

So if you are like J.O, we know you like the good life and want a better Nigeria with good roads, electricity, jobs and better infrastructure but that can’t happen if you don’t take advantage of VAIDS. You can still buy watches for the culture while embracing a good tax paying culture.
To find out more about VAIDS please visit our official website: http://vaids.gov.ng/

VAIDS (Voluntary Asset and Income Declaration Scheme) is a time-bound opportunity for tax payers to regularize their tax status without being prosecuted or paying interest charges.The major objective of this scheme is to increase the number of taxpayers in the tax net and also raise revenue.

The duration of scheme is from the 1stof July2017 to the 31st March 2018.It is divided into two phases: the first phase involves individuals disclosing their assets and income, then regularizing outstanding taxes without penalties and interest charges. The latter allows tax evaders to regularize their outstanding taxes but with interest charges.

It is important for all Nigerians to try to partake in this scheme as it would provide the revenue needed to build the Nigeria of our dreams. Once the scheme ends, non-participant defaulters will face the most severe punishment for tax evasion such as forfeiture of assets, imprisonment and more.

To get involved with this scheme please visit:http://vaids.gov.ng/ or follow VAIDSNG on Twitter and Facebook. ideclareng on Instagram.

Voluntary Asset and Income Declaration Scheme (VAIDS) is a scheme by the Federal Government to help increase tax awareness and compliance among Nigerians. This scheme grants all tax-paying citizens a limited opportunity to regularize their tax status without penalty or interest charges.

All citizens are advised to declare their assets as the Federal Government have put in place a team of international asset tracers and investigative specialists to help track assets held by Nigerians. The scheme would last from the 1st July 2017 to the31st March 2018 after which there will be no form of compassion for tax evaders who fail to utilize this scheme.

VAIDS offers a very flexible payment plan with provision for installment payments in the scheme. This scheme, like many other successfully implemented international tax schemes, will help to generate a substantial amount of revenue to complement the dwindling revenue generated from oil. The scheme is estimated to help generate about US$1billion worth of revenue. These funds would help to reduce Nigeria’s borrowing needs,spur development and allow investment in vital infrastructure.

To find out more about this scheme please visit: http://vaids.gov.ng/ or follow VAIDSNG on Twitter and Facebook. ideclareng on Instagram.

August 10th, 2017 marked another edition of Tax Thursday. Campaigns were carried out across the nation by Federal and States' Internal Revenue Services across the country to sensitize members of the public on the Voluntary Assets and Income Declaration Scheme and the need for people fulfill their civic obligation of paying taxes.

Kwara State Internal Revenue Service kicked off with an in-house training of the staff before visiting management of BAL Engineering Company and MAMTESS Stores. in Ilorin.

In Ogun State, the #VAIDS awareness train led by Ogun State Internal Revenue Service Executive Chairman, Mr. Kunle Adeosun, visited Heads and representatives of markets in Sagamu to educate the populace on VAIDS.

Tax Thursday is in line with the directive by the Acting President, Yemi Osinbajo that every Thursday be declared “Tax Thursday”, to create awareness and enlightenment on tax payment among Nigerians.

Chairman, Ogun State Internal Revenue Service, Mr. Kunle Adeosun, alongside Yomi Dawodu and Temidayo Sokunbi flag off #VAIDS #TaxThursday campaign in Abeokuta, Ogun State. The awareness and sensitization which is currently ongoing in different locations in Ogun State is in line with the Federal Government's commitment to dedicate every Thursday to educate Nigerians on the tax obligations and how they can take advantage of the Voluntary Assets and Income Declaration Scheme to rectify all their tax issues.

Whereas the Constitution imposes a duty on every citizen to declare his/her income fully and honestly to appropriate and lawful agencies and pay taxes promptly;

Whereas every taxable person is under obligation to voluntarily declare his/her income from all sources within and outside Nigeria by filing annual tax returns, computing same and paying the tax due to the tax authority;

Cognisant of the desirability of inculcating in all citizens, the ethics of responsibility to the nation, accountability, and honesty;

Aware that the Federal and State Governments owe citizens the duty of providing security, welfare and development in all its parameters; and

Consequent upon the determination of the Federal and State Governments to provide an opportunity for taxpayers who are in default under all relevant Statutes to voluntarily declare their Assets and Income and pay taxes due on them and in return obtain some benefits.

NOW THEREFORE, PURSUANT TO THE AUTHORITY VESTED IN ME BY THE CONSTITUTION AS THE ACTING PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA, I HEREBY ORDER AS FOLLOWS:

1. The Federal Ministry of Finance shall set up a Voluntary Assets and Income Declaration Scheme (hereinafter referred to as “the Scheme”) for all categories of taxpayers who have defaulted in payment of taxes due and collectible subject to the fulfillment of the terms and conditions as may be stipulated in this Order and other subsequent complementary regulations.

2. The Scheme shall provide a nine (9) month period commencing from the 1st of July 2017 for taxpayers who are in default of their tax liabilities to declare their assets and income from sources within and outside Nigeria relating to the preceding six (6) years of assessment.

3. The Scheme shall encourage and provide an opportunity for eligible taxpayers to:

a. regularise their tax status for all the relevant years;

b. pay all outstanding taxes;

c. prevent and stop tax evasion; and

d. ensure full tax compliance.

ELIGIBILITY TO PARTICIPATE

4. The Scheme is open to and targeted to all persons and entities that are in default of their tax liabilities in any way whatsoever, including those who:

a. earn an income or own assets but are yet to register with the relevant tax authorities;

b. are registered taxpayers who have additional disclosures to make or need to amend prior disclosures; and/or are registered but have not been filing returns;

c. have not been fully declaring their taxable income and assets;

d. have been underpaying or under remitting;

e. are under a process of tax audit or investigation with the relevant Tax Authority; and/or

f. are engaged in a tax dispute with the relevant Tax Authority but are prepared to settle the tax dispute out of court.

REQUIREMENTS FOR VALID DECLARATION

5. In order for an application pursuant to the Scheme to be valid, the following requirements must be met:

a. the disclosures by the taxpayer should be voluntary;

b. the disclosure must be full, frank, complete and verifiable in all material respects;

c. the disclosure must be made using the Voluntary Asset and Income Declaration Scheme forms or in any other form or manner as may be prescribed under the Scheme; and

d. the assessment of tax payable must be carried out by relevant tax authority.

RELIEFS/BENEFITS

6. Any taxpayer who truthfully and voluntarily declares his assets and income, complies with the regulations and guidelines and pays all outstanding taxes shall obtain the following benefits.:

a. immunity from prosecution for tax offences;

b. immunity from tax audit;

c. waiver of interest;

d. waiver of penalties; and

e. option of spreading payment of outstanding liabilities over a maximum period of three years as may be agreed with the relevant tax authority.

Provided however that the remission or waiver granted under these Regulations shall not prejudicially affect or invalidate any court order or judgment already obtained in respect of any default in payment of tax for which interest and/or penalty have already accrued.

7. The reliefs referred to in paragraph six (6) above are available in respect of all taxes administered by the Federal Inland Revenue Service as well as those administered by all State Boards of Internal Revenue.

CONSEQUENCES OF FAILURE TO COMPLY

8. Failure of any defaulting taxpayer to truthfully and promptly take advantage of this Scheme shall at the expiration of the Scheme result in the following consequences:

a. liability to pay in full, the principal sum due;

b. liability to pay all interest and penalties arising therefrom;

c. liability to be prosecuted in accordance with relevant extant laws for tax offences;

d. withdrawal of any reliefs, which may have been granted to the participant;

e. liability to undergo comprehensive tax audit; and

f. any sum paid in relation to the Scheme may be counted as part payment of any further outstanding tax in respect of undisclosed information.

CONFIDENTIALITY OF INFORMATION

9. All information provided by the taxpayer under the Scheme shall be treated with utmost confidentiality in accordance with the provisions of the relevant laws save where it is stated otherwise.

10. Any tax official or persons duly authorised to receive information under the Scheme who breaches the confidentiality of information received or exchanged under the Scheme without due authorisation or in breach of relevant laws shall be liable to prosecution under extant Federal and/or State Laws.

GENERAL

11. This Executive Order is valid only for the period in which the Scheme shall subsist, and relates to only persons who have voluntarily declared their assets and income within and outside Nigeria for the purpose of ascertaining their outstanding tax liability.

Provided however that any rights and status properly acquired by any participating taxpayer pursuant to the Scheme shall vest to the benefit of the taxpayer to the extent provided for by law.

12. This Executive Order shall be read in conjunction with all extant Tax Laws, Regulations and Guidelines as well as those that may be issued pursuant to the Scheme.

13. This Executive Order shall take effect from the 1st day of July 2017.

Dated this 29th day of June, 2017.

Prof. Yemi Osinbajo, SAN, GCON

Acting President of the Federal Republic of Nigeria

https://medium.com/@TheAsoVilla/executive-order-on-the-voluntary-assets-and-income-declaration-scheme-vaids-cb04028d652e

The Honourable Minister of Finance, Mrs. Kemi Adeosun, delivered a presentation this morning at the Presidential Quarterly Business Forum (PQBF) taking place at the State House, Abuja.

She discussed Nigeria's Tax-to-GDP and Budget-to-GDP ratio which is among the lowest, even in Sub-Saharan Africa. “There is no poor country that has a high Tax-to-GDP ratio, and there is no rich country that has a low Tax-to-GDP ratio”, she stated.

The Minister made it clear that the country’s revenue needed improvement. “We need to increase our budget size, but we can't depend on borrowing anymore, so we have to improve revenues and block leakages”, she revealed.

This is why the Voluntary Assets and Income Declaration Scheme (VAIDS); A window of opportunity for Nigerians - individuals & companies - to regularize Tax status was introduced.

1. What is the Voluntary Assets and Income Declaration Scheme (VAIDS)?

VAIDS is a 9-month Tax Amnesty scheme. It allows Nigeria to expose both individuals and companies to regularize their tax affairs. We have done quite a lot of work over the last 15 months looking at tax compliance in Nigeria. Our tax to GDP ratio is 6% — one of the lowest in the world. Now Ghana is at 15.9%, most developed countries are at about 30%. So it’s really very fundamental: very few people are paying the right taxes.

So, we did a study. Why are Nigerians not paying their tax or why are tax revenues so low? And what we found is that there is tax evasion on a major scale. A lot of people are not registered, many of the people who are registered are not paying the right taxes. And we now have the data. We actually engaged a team of experts and what we found was that in many cases, people’s lifestyles, which should really be from their tax income, did not correlate with their tax returns, so there was massive tax evasion.

For example, we looked at properties abroad, we looked at properties in high-value areas, we looked at BVN and found that some people’s assets and lifestyle when compared with their tax returns, for example you have somebody with five or six properties, yet shows a tax clearance that shows they paid N150,000 for the year. That’s the sort of evasion, on that scale, that we saw.

How many people are paying 20 million naira or more in Nigeria? Now to pay 20million naira in tax means you have an income of 80 million. For the whole country, 214 people. And all of them are in Lagos State. So are we saying that there are no rich people anywhere else in the country? And are we saying there are only 214 who are earning 80 million naira or more in the whole country? It’s not possible.

So those were the sorts of things that informed the need to actually declare a window of opportunity for people to actually do the right thing. We have the data and what we thought was if you go and pursue everybody, you will spend years in court pursuing tax evaders. So let’s open the window, lets allow those who want to regularise, declare honestly, do the right thing. And then that leaves those who don’t, we can then use the data that we have to go after them.

It all started really with the fight against corruption, when we were trying to trace stolen money and they were coming back to us and saying, No. Your problem is also untaxed money. A lot of money has gone out of Nigeria, bought properties in highbrow areas and they were giving us this data so we then began to look very closely at the issue of tax compliance. And when we saw the level of non-compliance, we just decided the best thing for us, rather than pursue everybody, is open a window and allow everybody to voluntarily regularize their status.

2. How do I take advantage of the VAIDS window?

We have designed declaration forms for Tax payers — companies or individuals — so they can honestly declare all unpaid taxes. Effectively, what they are doing is restating their tax returns. They are basically saying that in the previous five or six years, I did not declare all my income sources. I’m now coming clean and I’m declaring those income sources.

Ordinarily, restating your tax returns should have penalties. The penalty is 10% and you should pay interest of up to 21% per annum. We’ve said okay, we’ll waive those penalties, waive that interest, if you declare fully and honestly. And we’re giving you nine months to do so.

3. What if people don’t take this seriously, and don’t declare accurately or declare at all?

We have been working for the last 15 months on gathering Tax and Income information from various sources: from BVN data, from foreign property records, and we also engaged one of the world’s leading private investigation firms and they actually traced assets abroad. Technology has been very helpful in helping us to build accurate financial records of Nigerians. With this information we are in a position to go after anyone and everyone guilty of tax evasion.

In January 2018, there is something called the Automatic Exchange of Information (AEI) that kicks in, which Nigeria is a party to, which means we will automatically get access to information, from all tax Havens, and from other countries, on Nigerians abroad.

We already have quite a lot of information. The sources we looked at also included the Panama Papers, and Wikileaks. We did a lot of data mining, picked up Nigerian names, and so we’ve built very accurate tax profiles of a number of people and it’s very clear that they are not paying the right taxes.

4. How does VAIDS affect/impact Nigerians who own property abroad?

The issue is this: the property that you own abroad, where did the money to purchase it come from? If that money came from Nigeria and you’re tax resident in Nigeria, one would assume that you’ve paid tax on that money before you bought the property. So if you paid your taxes, you bought the property for, say, a hundred million, and we can see that in the preceding years, you have declared income of a hundred million, then we don’t have a problem with you. But if what we are seeing is that you bought a property worth a hundred million, but your tax declaration suggests that you only earn a million naira a year, the question then is, where did you get that money to buy that property? We could go after that property and say it’s either you stole the money, or you just didn’t declare tax on it. Either one is a crime.

So we are giving people an opportunity because now we can see their assets, we can work backwards and ask, how did you finance those assets? If you say you borrowed the money, fine. Show us where you borrowed it from. If you say you inherited the property, show us who you inherited it from. But if you are not able to show where you got that money from, then our assumption is that it is income that you earned in Nigeria on which you didn’t pay the right taxes.

Recently, on the BBC, there was this programme — Lagos to London — which profiled how many properties were purchased by Nigerians in highbrow areas of London. Nigerians have a taste for this type of property, but when you then try to correlate those property values with how much tax people are paying at home, it’s just unfair. I mean, there’s a sense of unfairness. The British, the Americans, the UAE, the Canadians, interestingly, we hadn’t contacted them. They came to us to say, “You haven’t looked at us. There are a lot of your citizens who own properties in our countries.”

5. How will VAIDS affect State Governments, who are also involved in and beneficiaries of the Tax Collection process? How will they benefit?

Personal Income Taxes (PIT) go directly to the state government, so increasing the number of people that are paying PIT will of course improve the fiscal health of the state governments. And of course, this is part of our drive to reduce our reliance on oil. The way it happens, the practical application of that rhetoric — ‘oh I want to be less dependent on oil’ — is Tax.

Company Income Tax goes to the Federal Government and that’s shared in FAAC. VAT also comes to the Federal Government but is shared in favour of the states so 85% of VAT actually goes back to the State Government through the FAAC account — but PIT that is deducted from our salaries actually goes directly to our states of residence.

So, we are covering all taxes, and there is a huge education element to what we are doing, to make sure people understand that these are their obligations to the various authorities.

Many countries of course, have no natural resources. They rely on their taxes. So we need to rebuild that so it will help the state governments and I think it will also help accountability because when people pay taxes, they will take much more interest in what’s going on at state government level, they will get involved in the budgeting, they’d ask for more accountability because their money us in there rather than the money that’s shared from Abuja

We’re fortunate to be blessed us with oil, but what if we didn’t have oil? And before oil this is how Nigeria used to operate; everybody would pay his or her taxes — whether cocoa, groundnut, cowrie shells; we had a system. When oil came, we dismantled that system and began to just simply rely on what is shared from Abuja.

Now in the last few years, we’ve worked out that that’s not sustainable, that’s not the way to go. So we have to recreate that tax-paying culture and the governors have been fully in support of this initiative, and they are going to drive the ‘Tax Thursdays’, so that we’ll make sure that everybody pays.

Because at the moment, it’s really unfair; only salaried employees are effectively paying taxes, and they are carrying the burden that should be borne by everybody. And it’s manifesting, we have a lot of services we can’t provide — both Federal and State Governments, because there’s no money; there’s just not enough money to do the things that we need to do. So we have to correct this problem.

6. How much is Nigeria looking to raise from the implementation of VAIDS?

Well, we haven’t set a specific target, because it’s very difficult. Anything over one billion dollars will be great. For context, a couple of countries have done this and they’ve raised anything from between 7 billion dollars and 15 billion dollars. So it really does depend on how much compliance we get from Nigerians, and it’s not just high net-worth Nigerians.

They are a big target, of course. Companies as well. We found a lot of companies evading taxes, paying minimum tax, shifting profits to other jurisdiction through transfer pricing to make sure that Nigeria gets a very small percentage of the money that’s actually generated in Nigeria.

And even at the lower levels, we are also finding massive tax evasion. We only have 14 million taxpayers in Nigeria, and the majority of them are on PAYE; that is, people who have their taxes deducted from source.

If you look at the structure of our economy, the majority of people either run their own business or work for themselves, or are company directors. These are the people that are not in the Tax net. So they are not in the net at the high end and they are not in the net at the low-end. And we are trying to correct both at the same time.

7. What assurances or guarantees exist that the Income and Tax returns information that people provide will not leak or be compromised in any way, and used against them?

As part of this work, we did a study of four countries that had done this successfully. Indonesia, South Africa, India and Turkey. One of the things that we discovered was that a lot of people were worried that if they declared, they could become a target. And so one of the learning points is that we have is to set up a very small unit, which we have done, which allows people to come forward — and they can come forward through their lawyers, through their accountants — very confidentially. And people have actually started to do so.

We’re saying, reach out to us very privately, and say, look, this is my situation. How can you protect me? And we are making sure — and this is in the Executive Order — that the information that they provided is confidential, and it is a crime to leak that information. So there is no risk of the information being used in an unauthorized manner; we simply are looking for the tax revenues that are due to the Nigerian government.

It is an offense to leak that information, and we are building the safeguards. And for certain people, we are handling it directly in Abuja, in my office, and saying look, you can come directly. For some people, the level of tax non-compliance is really significant, and they know and we know. They have special situations that they need to come and discuss with us one-on-one, and we are opening that window.

8. What’s in all of this for Nigerians? What is the government promising in return for compliance with VAIDS? Why should people be eager to pay taxes if they don’t trust that Government is looking out for their best interests?

The focus has got to be delivery of service, and I think that the Buhari administration has demonstrated clearly that we will not condone corruption and we will not condone wastage, and we will be very judicious in the use of public funds. We have delivered services at a time when there was very little money, so you can begin to imagine what we will deliver when we have a lot more money.

The partnership between the taxpayer and the person collecting the tax is a very important one, and I think it will improve accountability. We used to, at the state government level, have town hall meetings, and very few people would turn up. If they pay Taxes I assure you everybody will be there to look at the budget, and ask questions, and say what have you done with our money? So VAIDS will improve accountability, and I think it will put a lot of pressure on the government to deliver.

https://medium.com/@TheAsoVilla/minister-of-finance-mrs-kemi-adeosun-answers-faqs-on-vaids-96b4c6ca058f

The coming of the Voluntary Assets and Income Declaration Scheme (VAIDS) has been described as a tax revolution, which would change virtually all the anomalies and poor orientation to taxation in the country.

The Chartered Institute of Taxation of Nigeria (CITN), which made the observation, said the move towards awakening the tax culture and base is in line with global initiatives to tackle the problem of illicit financial flows and tax evasion that has contributed to Nigeria’s underdevelopment.

The institute’s President/Chairman of Council, Chief Cyril Ede, said the strategy to tackle the problem effectively, which involves the signing of agreements with a number of nations to provide Automatic Exchange of Information is also commendable.

This means that Nigeria will automatically have information required to successfully pursue tax evaders across the world, with some of the tax haven countries like Bahamas, Panama, Switzerland, among others are now party to the deal.

There is also an agreement to share bank information under Common Reporting Standard (CRS), with a number of countries like Indonesia, Italy and Argentina,, which have seen their tax revenues moved illegally to other nations already into similar programmes.

CITN chief, who recalled that the institute has been in the vanguard of the calls on government to declare tax amnesty, noted that the call was contained in a communique of the 18th Annual Tax Conference in May 2016.

“We are also happy to observe that all the State Internal Revenue Services and the FCT IRS under the umbrella of the Joint Tax Board had keyed into this worthy initiative and in full support; as the new scheme would contribute immensely towards boosting their much-needed internally generated revenue.

“The collaboration between the FIRS and the State Governments to tackle the problem of lack of full disclosure of assets and income, non – filing of tax returns and payment of tax, tax evasion and avoidance is laudable,” he said.

The tax chief said the institute is now awaiting procedural framework from the Ministry of Finance for purpose of assisting in the understanding of the implementation process in a manner that is consistent with extant laws.

https://guardian.ng/business-services/vaids-is-tax-revolution-says-tax-institute/