Companies and entrepreneurs that don’t have their tax affairs in order should act now to take advantage of the government’s Voluntary Assets and Income Declaration Scheme (VAIDS) (https://VAIDS.gov.ng), says Magnus Nmonwu (https://Twitter.com/mnmonwu), Regional Director for Sage West Africa (www.Sage.com).
The scheme runs from 1 July 2017 to 31 March 2018.
It gives taxpayers an opportunity to voluntarily declare all previously undisclosed assets and income, and thereby regularise their affairs. VAIDS applies to all taxpaying entities (individuals, companies, executors, trusts, partnerships and so on) and encompasses most tax categories, including company income, personal income, capital gains, VAT and stamp duty.
Implemented by the Federal Inland Revenue Service (FIRS) in collaboration with the State tax authorities, the scheme aims to increase Nigeria’s tax base, improve the tax collection to GDP ratio and clamp down non-compliance, says Nmonwu. “This is a perfect opportunity to come clean for people and companies who have under-declared or failed to declare their assets and income,” he adds.
“When the window closes on 31 March, companies and individuals that do not haaseetve their tax affairs in order may be subject to stringent penalties, punitive interest and even criminal prosecution. They may be named and shamed in a register of tax evaders, harming their personal and business reputations.”
