It will be difficult for the rich to avoid paying taxes given
the plans by the government to widen the tax net and capture all
those who should be paying, Finance Minister Kemi Adeosun said
yesterday in Enugu.
She expressed regret that no fewer than 56 million Nigerians,
who should be paying taxes, are not paying.
Mrs Adeosun spoke in Enugu during a sensitisation programme on
the Voluntary Assets and Income Declaration Scheme (VAIDS). It was
hosted by the Enugu State Government.
The minister said huge sums of money had been moved out of
Nigeria without the owners paying any tax. She said such people
would be fished out.
”The good news for government, which is bad news for the tax
evaders, is that globally, nations have agreed to share data under
the Automatic Exchange of Information. This means that sitting at
our desks in Abuja, we are getting information about assets that
the owners thought were well hidden from the tax authorities.
“As you know, Nigerians are entitled to keep their wealth
anywhere in the world, including under their mattress, but what the
law requires is that they pay tax on their income as they earn it,”
Mrs Adeosun said.
The event was attended by Enugu State Governor Ifeanyi Ugwuanyi;
Deputy Governor Cecilia Ezeilo; Speaker. Edward Uchenna Ubosi;
Commissioner for Finance Eucharia Uche Offor, members of the State
Executive Council, members of the House of Assembly and traditional
rulers, among others.
The minister said: “Payment of taxes is a fundamental
requirement for our growth story. Nigeria has a very poor scorecard
in tax payment. When oil came, we abandoned the old system of tax
collection that provided most of our infrastructure since colonial
days.
”Currently, we have just 14 million tax payers out of 70 million
who are economically active. So, many people who should be paying
are not paying anything. It is the development of taxes that will
help the states and the Federal Government to achieve their true
potentials.”
She explained that payment of taxes had become imperative to
avoid the recent collapse in oil prices and the resultant
recession.
Mrs. Adeosun recalled that after years of neglect, the Federal
Government has revived some road projects, including the 9th Mile –
Ngwo – Milken Hill – New Market.
“Indeed, the President Muhammadu Buhari Administration has
completely transformed road expenditure. In 2015, the figure was
N19 billion for the whole nation; in 2016, we increased it to N220
billion and we plan to do much more.
“This government has recognised that infrastructure is the key
to creating jobs, growth and wealth. We have already released N1.2
trillion in capital so far for the 2017 Budget, which commenced in
June 2017 and most of this was applied to roads, bridges, rail,
power, our airports and other key infrastructural projects.
“How will this capital investment translate to jobs? Not only do
we get the direct jobs with construction companies and others but
there is indirect opportunity for suppliers of building materials
and aggregates.
“In the longer-term, efficient infrastructure reduces the costs
of doing business and makes many ventures viable and profitable. We
are seeing young entrepreneurs springing up to replace imported
items with locally made goods of the highest standards. We are
seeing export of foods and finished goods into international
markets,” Mrs. Adeosun said.
On VAIDS, the minister said the scheme was initiated to provide
an opportunity for tax payers to regularise their tax status
relating to previous tax periods.
She maintained that tax defaulters who failed to take advantage
of the programme would be subjected to tax investigations as well
as made to face criminal prosecution for tax offences.
Ugwuanyi lauded Buhari and the minister for their
“resourcefulness and dynamism” in the establishment of VAIDS.
He enjoined all tax payers to take advantage of VAIDS to
regularise their tax liability.
The governor urged the President and the minister to prevail on
federal agencies in the state to pay their taxes.
He said the state government was committed to growing its
Internally Generated Revenue (IGR), which had increased from N14
billion in 2016 to N22 billion in 2017.
It will be difficult for the rich to avoid paying taxes given
the plans by the government to widen the tax net and capture all
those who should be paying, Finance Minister Kemi Adeosun said
yesterday in Enugu.
She expressed regret that no fewer than 56 million Nigerians,
who should be paying taxes, are not paying.
Mrs Adeosun spoke in Enugu during a sensitisation programme on
the Voluntary Assets and Income Declaration Scheme (VAIDS). It was
hosted by the Enugu State Government.
The minister said huge sums of money had been moved out of
Nigeria without the owners paying any tax. She said such people
would be fished out.
”The good news for government, which is bad news for the tax
evaders, is that globally, nations have agreed to share data under
the Automatic Exchange of Information. This means that sitting at
our desks in Abuja, we are getting information about assets that
the owners thought were well hidden from the tax authorities.
“As you know, Nigerians are entitled to keep their wealth
anywhere in the world, including under their mattress, but what the
law requires is that they pay tax on their income as they earn it,”
Mrs Adeosun said.
The event was attended by Enugu State Governor Ifeanyi Ugwuanyi;
Deputy Governor Cecilia Ezeilo; Speaker. Edward Uchenna Ubosi;
Commissioner for Finance Eucharia Uche Offor, members of the State
Executive Council, members of the House of Assembly and traditional
rulers, among others.
The minister said: “Payment of taxes is a fundamental
requirement for our growth story. Nigeria has a very poor scorecard
in tax payment. When oil came, we abandoned the old system of tax
collection that provided most of our infrastructure since colonial
days.
”Currently, we have just 14 million tax payers out of 70 million
who are economically active. So, many people who should be paying
are not paying anything. It is the development of taxes that will
help the states and the Federal Government to achieve their true
potentials.”
She explained that payment of taxes had become imperative to
avoid the recent collapse in oil prices and the resultant
recession.
Mrs. Adeosun recalled that after years of neglect, the Federal
Government has revived some road projects, including the 9th Mile –
Ngwo – Milken Hill – New Market.
“Indeed, the President Muhammadu Buhari Administration has
completely transformed road expenditure. In 2015, the figure was
N19 billion for the whole nation; in 2016, we increased it to N220
billion and we plan to do much more.
“This government has recognised that infrastructure is the key
to creating jobs, growth and wealth. We have already released N1.2
trillion in capital so far for the 2017 Budget, which commenced in
June 2017 and most of this was applied to roads, bridges, rail,
power, our airports and other key infrastructural projects.
“How will this capital investment translate to jobs? Not only do
we get the direct jobs with construction companies and others but
there is indirect opportunity for suppliers of building materials
and aggregates.
“In the longer-term, efficient infrastructure reduces the costs
of doing business and makes many ventures viable and profitable. We
are seeing young entrepreneurs springing up to replace imported
items with locally made goods of the highest standards. We are
seeing export of foods and finished goods into international
markets,” Mrs. Adeosun said.
On VAIDS, the minister said the scheme was initiated to provide
an opportunity for tax payers to regularise their tax status
relating to previous tax periods.
She maintained that tax defaulters who failed to take advantage
of the programme would be subjected to tax investigations as well
as made to face criminal prosecution for tax offences.
Ugwuanyi lauded Buhari and the minister for their
“resourcefulness and dynamism” in the establishment of VAIDS.
He enjoined all tax payers to take advantage of VAIDS to
regularise their tax liability.
The governor urged the President and the minister to prevail on
federal agencies in the state to pay their taxes.
He said the state government was committed to growing its
Internally Generated Revenue (IGR), which had increased from N14
billion in 2016 to N22 billion in 2017.
Read more https://nairalaw.com/minister-rich-can-no-longer-evade-tax/