FG won’t extend deadline for voluntary assets declaration –Fowler

The Executive Chairman, Federal Inland Revenue Service, Mr.
Babatunde Fowler, on Thursday called on tax defaulters to take
advantage of the Federal Government’s Voluntary Asset and Income
Declaration Scheme before the expiration of the March 31, 2018
deadline of the tax initiative.

Fowler said tax defaulters who do not take advantage of the
scheme would have themselves to blame, as the Federal Government
would not extend the deadline.

He spoke in Abuja at a training workshop for professionals,
advising clients on participation in the VAIDS initiative.

The VAIDs programme offers a grace period from July 1, 2017 to
March 31, 2018 for tax defaulters to voluntarily pay back to
government what they owe.

In exchange for full and honest declaration, the government
promises to waive penalties that should have been levied and also
waive the interest that should have been paid on overdue tax.

Also, those who declare their tax obligation honestly would not
be subjected to any investigation or tax audit after the nine-month
grace period.

Responding to an earlier request made by the President of the
Chartered Institute of Taxation of Nigeria, Mr. Cyril Ede, at the
event that the deadline be extended to September 2018, the FIRS
boss said those who do not believe in the scheme would not declare
their assets voluntarily, even if the nine-month grace period was
to be extended by 10 years.

He said, “This programme will not be extended. It is a Federal
Government’s initiative, it was adopted by the Senate, the House of
Representatives and I think people who have an intention to do the
right thing, even if you give them six months, would perform within
six months.

“But for individuals or corporate organisations who have no
intention of doing the right thing, even if you give them 10 years,
they would not perform within that period.

“Let us stick to this date and I’m aware that many people will
like to wait to the last moment for the rush.”

He said the Federal Government might offer defaulters with huge
tax liabilities the opportunity to spread their tax payment under
the VAIDS initiative.

He said this is one of the strategies of the government to ease
the burden of those who might have taken advantage of the new tax
scheme but have huge tax liabilities that may be difficult to
offset at once.

Fowler said, “We should advise them (tax defaulters) that even
if they declare, it doesn’t mean they have to make the payment on
the day that they declared.

“They are still given time and so let them prepare themselves
because there are possibilities of extending the payment time,
subject to the approval of the taxing authorities, whether it is
federal or states.

He called for support from tax professionals to make the scheme
successful, adding that through the initiative, the government
intends to raise the level of revenue generation through taxes.

Earlier, Ede had said the CITN would support the tax initiative
to succeed. He, however, called for an extension of the deadline
from March 31, 2018 to end of September 2018.

This, he noted, would enable more tax defaulters to key into the
programme.

He argued that in South Africa where the tax compliance rate is
higher than that of Nigeria, the scheme was implemented under an
11-month time-frame.

He wondered why Nigeria, with a low tax compliance rate, would
implement similar programme within nine months.

He said, “This kind of partnership underscores the fact that we
believe in the VAIDS programme and we have informed our members on
the need to support the scheme.

“But we want the deadline of March 31 to be extended to
September 2018 to allow many tax defaulters to regularise their
positions.”

The Executive Chairman, Federal Inland Revenue Service, Mr.
Babatunde Fowler, on Thursday called on tax defaulters to take
advantage of the Federal Government’s Voluntary Asset and Income
Declaration Scheme before the expiration of the March 31, 2018
deadline of the tax initiative.

Fowler said tax defaulters who do not take advantage of the
scheme would have themselves to blame, as the Federal Government
would not extend the deadline.

He spoke in Abuja at a training workshop for professionals,
advising clients on participation in the VAIDS initiative.

The VAIDs programme offers a grace period from July 1, 2017 to
March 31, 2018 for tax defaulters to voluntarily pay back to
government what they owe.

In exchange for full and honest declaration, the government
promises to waive penalties that should have been levied and also
waive the interest that should have been paid on overdue tax.

Also, those who declare their tax obligation honestly would not
be subjected to any investigation or tax audit after the nine-month
grace period.

Responding to an earlier request made by the President of the
Chartered Institute of Taxation of Nigeria, Mr. Cyril Ede, at the
event that the deadline be extended to September 2018, the FIRS
boss said those who do not believe in the scheme would not declare
their assets voluntarily, even if the nine-month grace period was
to be extended by 10 years.

He said, “This programme will not be extended. It is a Federal
Government’s initiative, it was adopted by the Senate, the House of
Representatives and I think people who have an intention to do the
right thing, even if you give them six months, would perform within
six months.

“But for individuals or corporate organisations who have no
intention of doing the right thing, even if you give them 10 years,
they would not perform within that period.

“Let us stick to this date and I’m aware that many people will
like to wait to the last moment for the rush.”

He said the Federal Government might offer defaulters with huge
tax liabilities the opportunity to spread their tax payment under
the VAIDS initiative.

He said this is one of the strategies of the government to ease
the burden of those who might have taken advantage of the new tax
scheme but have huge tax liabilities that may be difficult to
offset at once.

Fowler said, “We should advise them (tax defaulters) that even
if they declare, it doesn’t mean they have to make the payment on
the day that they declared.

“They are still given time and so let them prepare themselves
because there are possibilities of extending the payment time,
subject to the approval of the taxing authorities, whether it is
federal or states.

He called for support from tax professionals to make the scheme
successful, adding that through the initiative, the government
intends to raise the level of revenue generation through taxes.

Earlier, Ede had said the CITN would support the tax initiative
to succeed. He, however, called for an extension of the deadline
from March 31, 2018 to end of September 2018.

This, he noted, would enable more tax defaulters to key into the
programme.

He argued that in South Africa where the tax compliance rate is
higher than that of Nigeria, the scheme was implemented under an
11-month time-frame.

He wondered why Nigeria, with a low tax compliance rate, would
implement similar programme within nine months.

He said, “This kind of partnership underscores the fact that we
believe in the VAIDS programme and we have informed our members on
the need to support the scheme.

“But we want the deadline of March 31 to be extended to
September 2018 to allow many tax defaulters to regularise their
positions.”