The President of the Chartered Institute of Taxation of Nigeria (CITN), Chief Cyril Ede, has praised the Federal Government for its recently launched Voluntary Assets and Income Declaration Scheme (VAIDS) , saying the new scheme would contribute immensely towards boosting the much-needed internally generated revenue.
Aside this, the CITN boss also hailed the collaboration between the FIRS and the states on such issues such as disclosure of assets and income, non – filing of tax returns and payment of tax, tax evasion and avoidance.
He noted that the Federal Government’s move in awakening the tax culture and expand the tax base is in line with a global initiative to tackle the problem of illicit financial flows and tax evasion, which has contributed to the nation’s underdevelopment.
He added: “To tackle the problem effectively, Nigeria has signed agreements with a number of nations, which provide Automatic Exchange of Information (AIE). This means that Nigeria will automatically have information required to successfully pursue tax evaders across the world.
“Such nations include the Bahamas, Panama, Switzerland and other tax havens. There is also an agreement to share bank information under Common Reporting Standard (CRS). A number of countries, including Indonesia, Italy and Argentina, who have seen their tax revenues illegally moved to other nations have undertaken similar programmes to fund their national development,”he said.
Ede noted that the acting president’s executive order addresses vital issues such as eligibility, requirements for valid declaration, immunity for prosecution, available reliefs and consequences of failure to comply.
“We await the 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. Also worthy of note is the announcement of the Acting President that we have agreed that every Thursday will be declared Tax Thursday. This statement is capable of bringing affirmation action and consciousness to the tax discourse.Recall that our Institute has been in the vanguard of calling on government to declare tax amnesty.
“Taxpayer amnesty and relief programs are an increasingly popular means used effectively globally by tax authorities to encourage taxpayers to come forward and correct errant tax filings in exchange for potential immunity from prosecution, reduced penalties and other relief. Nigeria is not alone.
“We therefore encourage those that intend to take advantage of the Scheme to make honest declarations so that they will be free from prosecution and will qualify for forgiveness of penalties and interest. Under the Automatic Exchange of Information which Nigeria is now a party to and which comes into effect in 2018, Nigeria will have the information required to successfully pursue tax evaders as she would gather intelligence locally and through various international multilateral agreements to obtain information required for prosecution of those who make false declarations. We equally noted that an international forensic and asset tracing company is being engaged to support this process, “Ede added.
Non compliance with the scheme could lead to a full criminal investigation, criminal prosecution and even potential forfeiture of the assets as possible proceeds of crime. By participating in the Scheme, taxpayers avoid this risk. We at the Institute are earnestly looking forward to working with the government to ensure its successful implementation.”
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