VAIDS:  FG Insists On Assets’ Forfeiture, Prosecution of Tax Evaders

• As States, private sector seek deadline extension

BY EDMOND ODOK, ABUJA – Strong indications have emerged that the Federal Government will yield to mounting pressure from stakeholders advocating another open window for its tax amnesty programme, the Voluntary Assets and Income Declaration Scheme (VAIDS).

This is even as the Minister of Finance, Mrs Kemi Adeosun has warned that tax evaders risk prosecution and forfeiture of their assets for failing to embrace the tax amnesty and update their tax status.   

Mrs Adeosun, who confirmed the likely extension of the VAIDS’ window that expired on Saturday, March 31, 2018, said government is currently reviewing the requests by the States and private sector on the issue.

The tax amnesty had offered a nine-month window of opportunity for tax payers to regularise their tax liabilities or face sanctions.

Responding to media enquiries in Abuja, at the weekend, Mrs Adeosun said some States and the private sector have requested an extension to enable them comply with the VAIDS.

“The Federal Government is reviewing the numerous extension requests by the States and the private sector, which have cited some logistic challenges such as non-availability of the declaration forms in some states and the declaration of public holidays to commemorate Easter”, the Minister said.

According to her, the government’s data mining Unit in the Federal Ministry of Finance, Project Lighthouse, has compiled data of tax payers from land registries from 36 States and Federal Capital Territory (FCT) as well as their bank accounts to aid the process of improved tax revenue drive in the country. 

“We have also received tremendous support from foreign countries which provided data under the exchange of information protocols. The data include bank records and financial filings for tax purposes,” Adeosun said.

A statement by Oluyinka Akintunde, Special Adviser, Media and Publicity to the Finance Minister said the Project Lighthouse has identified the common violations by non-compliant tax payers to include: Under-declaration of and non-declaration of income earned including income from Government contracts and overseas trading; and Collection of Value Added Tax (VAT), which is not duly remitted to Federal Inland Revenue Service (FIRS).

Others are charging of non-allowable personal expenses to company accounts, particularly with reference to overseas school fees; and inconsistency between income declared for tax purposes and the value of assets owned.