Further to the Federal Government’s executive order on “Voluntary Assets and Income Declaration Scheme” (VAID), signed by Acting President Yemi Osinbajo on June 29, 2017, the Securities & Exchange Commission (SEC), on Tuesday directed capital market operators and public limited companies (PLCs) in Nigeria to regularize their tax status as it relates to previous tax periods.
In a circular pasted on its website and dated July 25, the commission urged for a full and honest declaration of assets and income from sources within and outside Nigeria and pay taxes due on them within nine months from July 1, 2017 to March 31, 2018.
After the March 31, 2018 deadline, the SEC said all market operators and public companies “shall be required to show evidence of compliance with VAIDS or a clean tax status as part of their mandatory submissions to the commission,” or risk appropriate sanctions in accordance with the law.
The commission warned that “while the statute of limitations for a tax investigation for honest returns is six years, there is no limit where a fraudulent return has been submitted for assessment.”
The commission therefore urged capital market operators and PLCs in default contemplated within the executive order to take advantage of the nine-month grace period to rectify their tax status in line with the order.