VAIDS: LIRS chairman counsels tax defaulters on compliance

….Defaulters to face prosecution
Executive Chairman of the Lagos Inland Revenue Service (LIRS), Mr. Ayodele Zubair, has described the Voluntary Assets and Income Declaration Scheme (VAIDS) as the last chance for tax offenders to redeem themselves.

Speaking recently on the sidelines of the International Conference of African Tax Administrations Forum (ATAF) holding in Abuja, Zubair said the scheme could not have been introduced at a better time.

He said, “AIDS is a very good initiative undertaken by the present administration and headed by the Minister of Finance, Mrs. Kemi Adeosun.

“The whole idea is to bring a lot of Nigerians into the tax net and, by so doing, increase the tax base and the culture of paying taxes in Nigeria.”

He urged those with previously undeclared taxes and assets to voluntarily and truthfully declare such, as they will be absolved of all the income and penalties.

While acknowledging the existence of mixed feelings about the scheme, Zubair urged tax offenders to embrace the scheme saying that it affords them the last opportunity to escape heavy sanctions that they may face in case of any default.

“Government is going the whole hog at the end of the amnesty programme; and all the people who have not voluntarily and truthfully disclosed all their untaxed incomes will surely face prosecution,” he warned.

He added that government at the federal and state levels, are committed to the success of VAIDS, adding that that there is a lot of information being shared locally and internationally on property ownership and other items.

He said, “A lot of data mining is going on. A lot of data is being mined on a daily basis, both locally and internationally, on property ownership and the likes.”

Zubair, however, said that a lot of people have started showing interest and trust in the scheme, which offers confidentiality and expressed belief that the sincerity of the government will arouse greater confidence in the scheme among Nigerians.

“All over the world, no one wants to pay taxes except they are forced to. People are coming to us and want to know about the programme. They are willing to trust the system in terms of the confidentiality promised.

Zubair added that VAIDS would help increase the country’s tax-to-Gross Domestic Ratio, which is one of the lowest in the world.

Nigeria’s tax-to-GDP ratio currently stands at a measly 6 per cent. Compared to India’s at 16 per cent, Ghana’s 15.9 per cent and South Africa’s 27 per cent, the country occupies a basement position.