By Odunewu Segun
Tax evaders in the country have been given between July 1 and December 31, 2017 to regularize their tax status or risk a 5-year jail term as well as forfeiture of their assets in a new drive to increase government revenue from tax, Mrs. Kemi Adeosun, Minister for Finance has disclosed.
According to findings by National Daily, the federal government targets at $1bn from the new tax drive.
Adeosun who also revealed plans by the Acting President, Pro. Yemi Osinbajo to launch the Voluntary Asset and Income Declaration Scheme (VAIDS), a new tax reform programme this Thursday, June 29, said punishment for tax evasion would be severe.
According the minister, aside from the 5-year jail term for tax evaders, there will also be extra severe penalties of up to 100 per cent of the outstanding tax due, compound interest at 21 per cent per annum and forfeiture of assets.
“The plan to be executed jointly by federal and state governments, concentrates on the national duty of all Nigerian companies and citizens to pay their taxes wherever their income is earned, wherever they reside and no matter how rich they are,” she stated.
Adeosun added that tax evasion leaves an unfair burden of payment on the poorest Nigerians.
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She, however, expressed joy that regulatory change was enabling easier access to information across the world for the government to track taxable obligations of the citizens.
She said: “International agreements effective 2018 make the exchange of banking information across borders automatic. Nigeria has signed agreements with a number of nations (United States, UK, Canada, UAE, Switzerland, Mauritius, Panama and Bahamas) – all of whom have pledged support and cooperation to exchange information on citizens that is relevant for tax purposes.”
Adeosun further revealed that tax evaders who want to avoid the full force of the law have between July 1 and December 31, 2017, to regularise their tax status in exchange for immunity from prosecution of tax offences and a tax audit, and be absolved from penalty charges and interests.