Voluntary Assets and Income Declaration Scheme (VAIDS) Form Online Portal
This is to notify the general public that the Voluntary Assets and Income Declaration Scheme (VAIDS) has been launched Online for those who are reputable people and willing to show the world that they pay their tax and has no hidden asset.
Introduction of VAIDS
Recently, the Acting President, Prof. Yemi Osinbajo, SAN formally launched the Voluntary Assets and Income Declaration Scheme (VAIDS). The Scheme has successfully started since 1 July 2017 ans will run for a period of 9 months only.
According to their Voluntary Assets and Income Declaration Scheme Official Website, 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.
Furthermore, it was reported that the Scheme would be implemented by the Federal Inland Revenue Service (FIRS) in collaboration with all 36 State Internal Revenue Services and the FCT IRS.
Objectives of VAIDS
From the information and data gathered from the VAIDS portal, the main objective of the scheme is
to increase the number of taxpayers in the tax net and raise revenue. This is specifically, to:
- First, increase Nigeria’s tax to GDP ratio from the current 6% to between 10% and 15%.
- Secondly, broaden the national tax base.
- Thirdly, Curb non-compliance with existing tax laws.
- Finally, Discourage illicit financial flows and tax evasion.
Overview of the Scheme Framework
Generally speaking, the legal basis for the Scheme is an Executive Order signed into law by the Acting President and a Memorandum of Understanding signed between the FIRS and the State Internal Revenue Services.
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Incentives:
First and foremost, Taxpayers who make full and honest declarations will enjoy waiver of interest and penalty, immunity from prosecution, confidentiality, exemption from tax audits for the periods covered and above all flexible payment of tax due.
Scope and applicable taxes:
Ordinarily, the Scheme is applicable to all persons (individuals, companies, executors, trustees, partnerships etc.) liable to tax in Nigeria. In the light of this, Taxes covered include Companies Income Tax, Personal Income Tax, Petroleum Profits Tax, Capital Gains Tax, Value Added Tax, Stamp Duties, Tertiary Education Tax and NITDA levy.
Non declaration:
Taxpayers who fail to participate in the Scheme will be investigated and if found culpable will be subject to criminal prosecution. On the other hand, a ‘name and shame” list of tax evaders will be published.
Other matters:
All things considered, there will be sensitisation for professionals and taxpayers in general. In a like manner, about 7,500 Community Tax Liaison Officers (CTLO) are being recruited and trained for this purpose. Moreover, effective July 2017, every Thursday will be declared as ‘Tax Thursday’ to focus on tax matters.
For instance as a fall-back option, government would rely on various international conventions and multilateral agreements to obtain information required for prosecution of defaulting taxpayers or those who make false declarations.
Similarly, an international forensic and asset tracing company has been engaged to support this process.
Takeaway
In the same fashion, given the state of the economy in view of the huge fall in oil revenue, ballooning budget deficit and rising debt servicing cost, it is not surprising that government is taking a drastic measure to change the country’s tax narratives.
VAIDS encourage taxpayers to embrace this opportunity to correct any areas of non-compliance with their tax obligations and hold government accountable for effective utilisation of revenue collected.
In conclusion and in the light of this Taxpayers are expected to voluntarily declare all previously undisclosed assets and income under the Scheme from 1 July 2017 to 31 March 2018.
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