Osinbajo signs executive order to track tax evaders

.Gives offenders 9 months to comply or face prosecution

.Impunity over tax evasion has come to an end, says Finance Minister

Acting President Yemi Osinbajo (SAN) has signed another executive order backing the implementation of the Voluntary Assets and Income Declaration Scheme (VAIDS).

Osinbajo signed the order on Thursday at the State House Banquet Hall in Abuja, saying that there was the need to ensure that the scheme, as designed by the Federal Ministry of Finance, is backed by the full force of the law.

He said that the development would enhance the payment of taxes and punish offenders after the nine-month grace period.

Osinbajo, who declared the scheme open, quoted Benjamin Franklin, one of the founding fathers of the United States, “In this world nothing can be said to be certain, except death and taxes.”

He explained that when people pay taxes, they pay more attention to what government does, adding that “there’s a greater level of political and social consciousness.”

“Taxes are not only about boosting government revenues; when people pay taxes, they hold government to account more. Only 214 Nigerians pay taxes of N20 million or more each year. A personal tax bill of N20 million implies personal income of N80 million.

“All of these 214 Nigerians who pay N20 million or more in taxes annually are to be found in Lagos State. I’m sure in this room (and I’m not looking at anyone), there are another 214 people who earn more than N80 million annually.

“Tax evasion is not limited only to wealthy Nigerians. Also not limited to individuals. Many companies maintain 2-3 sets of books,” he added.

Osinbajo said Nigeria is now party to the new global standard on Automatic Exchange of Information (AEOI), which kicks off 2018, and would facilitate apprehension of tax evaders.

“Starting today, every Thursday will be tax Thursday across Nigeria, for tax enlightenment and awareness. Today, I declare that paying Taxes is our duty to our nation, and I declare the Voluntary Assets and Income Declaration Scheme open,” he concluded.

Meanwhile, the Federal Government on Thursday launched its Voluntary Asset and Income Declaration Scheme (VAIDS) to broaden the country’s tax base and offer incentives for tax evaders.

According to the Ministry of Finance, the tax amnesty will run for the next nine months, effective from July 1, 2017.

From July 1 to December 31, the government would offer “waiver of interest and penalty, no prosecution of tax offences and no tax audit” to all tax evaders who declare their “hidden assets”.

From January 1 to March 31, there will only be “waiver of penalty, no prosecution of tax offences and no tax audit”.

“We are doing two things today: we are sending a clear signal to tax evaders in our country that the party is over,” Kemi Adeosun, the Minister of Finance, said.

“We’re also calling on these evaders to do the right thing and rapidly come clean for the good of their country or face the full consequences of the law. This window of opportunity will never be offered again.

“The proceeds of this scheme will not disappear. They will be invested in key infrastructure projects and for clearance of pension arrears,” she added.

In his remarks, Sen. John Enoh, representing Cross River Central Senatorial district in the Senate, who represented the President of the Senate at the occasion, assured of legislative backing to the scheme.

He said the Senate would pass whatever legislation needed to improve tax compliance in the country.

Similarly, the Chairman of Nigeria Governors Forum, Abudulaziz Yari, pledged the state governments’ support and commitment toward the new initiative.

Yari, who is also the Governor of Zamara State, said that state governments would be the biggest beneficiary of revenues derived from the scheme as they would give the FIRS necessary support.

A recent report of the Joint Tax Board showed that only 14 million people out of the estimated 69.9 million Nigerians, who are economically active, are paying taxes.

Accordingly, 96 per cent of the 14 million have their taxes deducted at source; this shows that they are government workers.