VAIDS: Regularizing Your Tax Status

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Regularizing one’s tax status under the Voluntary Asset and Income Declaration Scheme (VAIDS) can only be done by remitting all applicable taxes to the relevant tax authorities including the FIRS and SBIRS, depending on the type of tax in issue. Payments are to be made by quoting the entities full name and a reference Tax Identification Number (TIN) through a Bank. The Bank is expected to issue a payment receipt when payment is made. For persons or entities who have never paid tax, application for a TIN would be the first step before payment can be made.

However, the Scheme recognizes that many tax defaulters who are willing to comply may be cash-strapped. Thus, VAIDS avails defaulter the opportunity to enter into arrangements to pay outstanding tax liabilities in installments. At the discretion of the relevant tax authority, defaulters may be granted up to 3years to pay up their tax liability, but with the obligation to pay the interest accrued on the outstanding balance.

Where a defaulter is unable to determine his/her tax liability, the scheme also made provision for agents of the relevant tax authorities to help calculate such tax liability. But this can only be done after a defaulter has registered for VAIDS by filing the declaration form.

 

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