FG to prosecute tax offenders through special courts

…identifies 130,000 high profile tax evaders

The Federal Government will from April 1 this year start the
prosecution of tax defaulters who fail to take advantage of the
nine-month amnesty window provided by the Voluntary Assets and
Income Declaration Scheme.

It said that from that date, special tax courts would be
established to prosecute those who failed to regularise their tax
status under VAIDS.

The Minister of Finance, Mrs. Kemi Adeosun, said these on
Tuesday in Abuja during a live breakfast show, ‘Good Morning
Nigeria’, aired by the Nigerian Television Authority.

VAIDS 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 the
interest that should have been paid on overdue taxes.

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

The minister said the government was aware of the slow nature of
the judicial system and would be setting up special courts to
fast-track the adjudication of tax-related offences under the VAIDS
initiative.

She noted that all incomes, assets and other properties earned
and acquired from 2010 to date would be covered under VAIDS.

The minister added that assets, properties and incomes acquired
or earned during the period must be accounted for by individuals
and companies under the scheme.

She said that through the data mining programme being
implemented under the ‘Project Lighthouse’ initiative, over 130,000
high profile individuals had been identified for scrutiny.

Adeosun explained that upon the expiry of the March 31 deadline,
the Federal Government would go after the 130,000 high profile
individuals.

The minister stated that the government, through the use of
information technology, had gathered adequate data that would be
used to prosecute the offenders.

She lamented that the lifestyles of many of the high net-worth
individuals did not support their tax status, adding that the
government was fully committed to effectively implementing the tax
amnesty programme.

Adeosun gave an example of a high profile individual, who she
said owned a private jet and properties in London, but had been
paying about N480,000 as tax annually in the last five years.

She said, “We have found a lot of companies in their thousands,
which have not either paid anything (as taxes) or under-declared.
We have somebody who got a contract from the government for
billions of naira and (when) we checked his tax status, he never
declared that money.

“After March 31, we have plans to do special tax courts and
accelerated prosecution because the thing with tax prosecution is
that it is a very simple case with no defence to it. It’s a matter
of law; the question to ask is: ‘Did you pay or not?’ So it’s a
very easy case and it’s not like the EFCC cases that we will have
to be tracing this or that.

“The focus on tax collection remains after VAIDS. Yesterday, we
were analysing data and now we have flagged over 130,000 already,
and from March 31, we will start and say these people did not
participate in VAIDS and this is the data we have on them, now
pursue them.

“There can be no sacred cows and nobody should be too big or too
small to be told to do the right thing. People must as they earn
money pay a portion of it; and so, the focus on tax will
continue.”

The finance minister also accused multinational companies of
colluding with tax officials to manipulate the tax system in
Nigeria.

She said, “On the issue of multinationals, what we’ve found out
is that they are not paying the right taxes and they are sometimes
the ones colluding with tax officers here to minimise their taxes
and we feel that is a corrupt practice.

“In the United States, if you offer a bribe, it’s an offence and
we feel that going to another country and deliberately manipulating
the tax system so as not to pay from that country where you are
earning so much will also be labelled in that category.”

When asked whether the Federal Government would extend the tax
amnesty programme beyond the March 31 deadline, she said there was
no plan for any extension.

There has been pressure on the Presidency in the last few days
by some former governors, top politicians, high profile
individuals, business owners and professional bodies, among others,
for an extension of the scheme.

But Adeosun stated that the government would not extend the tax
amnesty programme.

…identifies 130,000 high profile tax evaders

The Federal Government will from April 1 this year start the
prosecution of tax defaulters who fail to take advantage of the
nine-month amnesty window provided by the Voluntary Assets and
Income Declaration Scheme.

It said that from that date, special tax courts would be
established to prosecute those who failed to regularise their tax
status under VAIDS.

The Minister of Finance, Mrs. Kemi Adeosun, said these on
Tuesday in Abuja during a live breakfast show, ‘Good Morning
Nigeria’, aired by the Nigerian Television Authority.

VAIDS 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 the
interest that should have been paid on overdue taxes.

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

The minister said the government was aware of the slow nature of
the judicial system and would be setting up special courts to
fast-track the adjudication of tax-related offences under the VAIDS
initiative.

She noted that all incomes, assets and other properties earned
and acquired from 2010 to date would be covered under VAIDS.

The minister added that assets, properties and incomes acquired
or earned during the period must be accounted for by individuals
and companies under the scheme.

She said that through the data mining programme being
implemented under the ‘Project Lighthouse’ initiative, over 130,000
high profile individuals had been identified for scrutiny.

Adeosun explained that upon the expiry of the March 31 deadline,
the Federal Government would go after the 130,000 high profile
individuals.

The minister stated that the government, through the use of
information technology, had gathered adequate data that would be
used to prosecute the offenders.

She lamented that the lifestyles of many of the high net-worth
individuals did not support their tax status, adding that the
government was fully committed to effectively implementing the tax
amnesty programme.

Adeosun gave an example of a high profile individual, who she
said owned a private jet and properties in London, but had been
paying about N480,000 as tax annually in the last five years.

She said, “We have found a lot of companies in their thousands,
which have not either paid anything (as taxes) or under-declared.
We have somebody who got a contract from the government for
billions of naira and (when) we checked his tax status, he never
declared that money.

“After March 31, we have plans to do special tax courts and
accelerated prosecution because the thing with tax prosecution is
that it is a very simple case with no defence to it. It’s a matter
of law; the question to ask is: ‘Did you pay or not?’ So it’s a
very easy case and it’s not like the EFCC cases that we will have
to be tracing this or that.

“The focus on tax collection remains after VAIDS. Yesterday, we
were analysing data and now we have flagged over 130,000 already,
and from March 31, we will start and say these people did not
participate in VAIDS and this is the data we have on them, now
pursue them.

“There can be no sacred cows and nobody should be too big or too
small to be told to do the right thing. People must as they earn
money pay a portion of it; and so, the focus on tax will
continue.”

The finance minister also accused multinational companies of
colluding with tax officials to manipulate the tax system in
Nigeria.

She said, “On the issue of multinationals, what we’ve found out
is that they are not paying the right taxes and they are sometimes
the ones colluding with tax officers here to minimise their taxes
and we feel that is a corrupt practice.

“In the United States, if you offer a bribe, it’s an offence and
we feel that going to another country and deliberately manipulating
the tax system so as not to pay from that country where you are
earning so much will also be labelled in that category.”

When asked whether the Federal Government would extend the tax
amnesty programme beyond the March 31 deadline, she said there was
no plan for any extension.

There has been pressure on the Presidency in the last few days
by some former governors, top politicians, high profile
individuals, business owners and professional bodies, among others,
for an extension of the scheme.

But Adeosun stated that the government would not extend the tax
amnesty programme.