Minister of Finance, Mrs. Kemi Adeosun on Tuesday ruled out extension of the Federal Government’s March 31, 2018 deadline for the tax amnesty programme under its Voluntary Assets and Income Declaration Scheme (VAIDS).
Speaking on “Good Morning Nigeria,” a programme on the Nigerian Television Authority, she said sufficient period had been given since it began since July last year for tax payers to voluntary and truthfully declare their assets and income not previously declared.
The Minister also noted that the Federal Government has identified a new batch of over 130,000 high net worth individuals and companies with potential tax underpayments, according to the data being compiled by Project Lighthouse in preparation for the closure of the ongoing VAIDS on March 31, 2018.
A statement by Oluyinka Akintunde, Special Adviser, Media & Communications to the Minister described Project Lighthouse as a unique project of the Federal Ministry of Finance that combines data from Federal and State agencies and overseas countries.
According to her, “the data have been received from a number of sources including land registries of the governments of Lagos, Kaduna, Kano and Ogun States as well as the Federal Capital Territory.
“In addition, Nigeria has been able to request data from a number of nations including traditional tax havens. The data have been received from a number of foreign jurisdictions under the exchange of information protocols.
“Under the exchange of information protocols, this information relates to bank records and financial filings for tax purposes and is obtained from tax havens who are signatories to the information sharing agreements such as British Virgin Islands and Mauritius.”
She explained that the data received from overseas countries would only be used for taxation purposes in line with the protocols governing the exchange of information
“The sole interest of the Federal and State Governments in the use of the data is in raising tax revenues. There is absolutely no hidden agenda on the use of the data,” she added.
Adeosun hailed the ‘unprecedented’ level of cooperation between the Federal and State Governments, which she said was a marked change from the past when the various arms of Government did not align their efforts.
The Minister 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;
- Collection of Value Added Tax (VAT) which is not duly remitted to FIRS;
- Charging of non-allowable personal expenses to company accounts particularly with reference to overseas school fees;
- Inconsistency between income declared for tax purposes and the value of assets owned.
She advised non-compliant tax payers to seek professional advice and to also consult relevant literature available from the tax authorities on tax rules.
She underscored the Federal Government’s commitment to raising tax revenues which were essential to grow the economy and create jobs for Nigerians.
She cited the fact that just N1m could feed over 14,200 primary school children under the Homegrown School Feeding programme as well as creating many jobs in the agricultural sector.
On the economy, she assured that the country was on the path of growth.
Nigeria, it would be recalled, had exited recession in the second quarter of 2017, recording a growth of 0.72 per cent.
The country further consolidated its recovery in the third and fourth quarters of last year, with growths of 1.40 per cent and 1.92 per cent, respectively.
Adeosun said, “the Administration of President Muhammadu Buhari has laid the foundation for the repositioning of the economy by a series of reforms which are being sequenced to ensure maximum impact and benefits to Nigeria and the citizens.
“These include huge investments in infrastructure and social welfare across the country, improved revenue mobilisation, rebuilding of foreign reserves and stabilization of exchange rate.”
She further noted that revenue mobilisation was potentially the master key to unlocking Nigeria’s huge growth potentials and funding the infrastructure programmes.
In addition, the Minister said the Federal Government would continue to create more fiscal space for reforms to enhance productivity and opportunity in the non-oil sector.