On July 1st, 2017, the Federal Government of Nigeria (FG) launched the Voluntary Asset and Income Declaration Scheme-VAIDS, granting a 9-month amnesty period to all defaulters to voluntarily declare their assets and income within and outside Nigeria for the purpose ascertaining their outstanding tax liability or face criminal prosecution at the expiration of the grace period.
Nigeria Tax/GDP ratio is lowest in the world at 6% (compared to 15-30% for peers). Thus, the Scheme provides a one-time opportunity for defaulters to regularize their tax status relating to previous tax periods; pay all outstanding taxes and prevent/stop tax evasion.
The 9-month amnesty period is expected to expire on 31-March-2018. Hence, the FG has vowed not to extend the deadline. To help our clients navigate their way through the process, United Capital Research Daily insight will be focused on key provisions of the scheme over the next few days while further creating awareness on the importance of adherence to the provisions of VAIDS.
Specifically, we will look at;
- Benefits of compliance vs. penalties for non-compliance
- Eligible assets, incomes, and participants
- The requirement for valid declaration; and methodology, structuring, and flexibility of payment under VAIDS.
- Other issues such as declaring anonymously, tax already paid, confidentiality.