The Federal Government of Nigeria would begin to prosecute, name and shame tax evaders from March 31, the Minister of Finance, Mrs. Kemi Adeosun, announced on Thursday.
Why it matters: More than 90 percent of Nigerians do not pay taxes, and March 31 is the deadline for the tax amnesty programme, the Voluntary Assets and Income Declaration Scheme (VAIDS), which mandates tax evaders to regularise their tax profiles without consequences. After that, they would be named, shamed and prosecuted.
Adeosun was speaking at the VAIDS Stakeholders Symposium held at the Umaru Shehu Yar’Adua Centre, Murtala Square, in Kaduna State.
Mrs. Adeosun said 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 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,” she said.
“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 said 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.