President Muhammadu Buhari has approved the extension of
the Voluntary Assets and Income Declaration Scheme
(VAIDS) to June 30, 2018.
The short extension after the original March 31 date is based on
the appeals of professional bodies and individual
taxpayers, Femi Adesina, spokesman of the president, said in a
statement.
Adesina added that no further extension of time will be approved
after June 30.
He statement said the new date was given based on the conviction
of the ministry of finance that the overall objective to increase
compliance will be attained, and additional revenue will
accrue.
“A fresh executive order will be made to give legal backing
to the new timeline,” the statement read.
“For a nation of people who are competitive and driven, it is
not a pride that we are the lowest performer in tax to GDP, not
just in Africa, but in the world.
“Nigeria’s growth needs are such that every Nigerian must do his
duty to his nation, to his neighbour, and to himself.
“Hiding monies overseas, evading taxes by manipulation, and
other unwholesome practices, have never developed a country, and
for Nigeria to attain her true potential, these must stop.”
The president urged Nigerian companies and individuals to join
government in the rebuilding mission, “and do the right thing by
taking this window of extension to regularise.”
He added that the right thing may not be convenient or
comfortable, “but in the long run, we will all have a nation we can
be proud of.”
Buhari urged tax authorities to use the extension window to
perfect plans to prosecute those who fail to regularise their tax
status.
The government says VAIDS is one of the key policies used
to reposition the economy and correct inherited
underdevelopment.
Nigeria has one of the lowest tax collection rates in the world
at just 6% of GDP.
This was partially a function of the reliance on oil that saw us
abandon the historical revenue collection systems and switch to a
culture of sharing resources, rather than generating them.
Last year, Buhari launched the economic recovery and growth plan
(ERGP), and the VAIDS tax amnesty is first in the series of reforms
by the current administration.
VAIDS provides a window of opportunity, an amnesty of sorts, for
taxpayers — both individual and corporate — to be honest with what
they earn and own, and voluntarily pay up on their tax arrears
between 2010 and 2015.
With a target of raising at least $1 billion from undeclared
liabilities, VAIDS applies to all tax-paying individuals,
companies, executors and trusts, and covers all taxes collectible
by federal and state tax authorities.
The goal is to raise the percentage of non-oil tax revenue from
the current 6 percent to 15 percent by 2020.
President Muhammadu Buhari has approved the extension of
the Voluntary Assets and Income Declaration Scheme
(VAIDS) to June 30, 2018.
The short extension after the original March 31 date is based on
the appeals of professional bodies and individual
taxpayers, Femi Adesina, spokesman of the president, said in a
statement.
Adesina added that no further extension of time will be approved
after June 30.
He statement said the new date was given based on the conviction
of the ministry of finance that the overall objective to increase
compliance will be attained, and additional revenue will
accrue.
“A fresh executive order will be made to give legal backing
to the new timeline,” the statement read.
“For a nation of people who are competitive and driven, it is
not a pride that we are the lowest performer in tax to GDP, not
just in Africa, but in the world.
“Nigeria’s growth needs are such that every Nigerian must do his
duty to his nation, to his neighbour, and to himself.
“Hiding monies overseas, evading taxes by manipulation, and
other unwholesome practices, have never developed a country, and
for Nigeria to attain her true potential, these must stop.”
The president urged Nigerian companies and individuals to join
government in the rebuilding mission, “and do the right thing by
taking this window of extension to regularise.”
He added that the right thing may not be convenient or
comfortable, “but in the long run, we will all have a nation we can
be proud of.”
Buhari urged tax authorities to use the extension window to
perfect plans to prosecute those who fail to regularise their tax
status.
The government says VAIDS is one of the key policies used
to reposition the economy and correct inherited
underdevelopment.
Nigeria has one of the lowest tax collection rates in the world
at just 6% of GDP.
This was partially a function of the reliance on oil that saw us
abandon the historical revenue collection systems and switch to a
culture of sharing resources, rather than generating them.
Last year, Buhari launched the economic recovery and growth plan
(ERGP), and the VAIDS tax amnesty is first in the series of reforms
by the current administration.
VAIDS provides a window of opportunity, an amnesty of sorts, for
taxpayers — both individual and corporate — to be honest with what
they earn and own, and voluntarily pay up on their tax arrears
between 2010 and 2015.
With a target of raising at least $1 billion from undeclared
liabilities, VAIDS applies to all tax-paying individuals,
companies, executors and trusts, and covers all taxes collectible
by federal and state tax authorities.
The goal is to raise the percentage of non-oil tax revenue from
the current 6 percent to 15 percent by 2020.
Read more https://nairalaw.com/fg-extends-deadline-of-vaids-to-june-30/