Following the controversies trailing the leak of over 13 million files at the weekend in what is being collectively referred to as the Paradise Papers, the Federal Government has said it is going investigate all Nigerian who have been linked to offshore accounts in some tax havens as leaked by Paradise Papers.
The Paradise Papers closely resemble a document leak from last year known as the Panama Papers, which also detailed the offshore holdings and tax avoidance schemes of some of the world’s most powerful people.
It listed many international politicians, including those from Nigeria. Even Queen Elizabeth was mentioned, and top government officials of making of off shore havens to avoid tax liabilities.
It’s one of the biggest data leaks in history, and involves the elaborate offshore assets of top politicians and corporations, as well as some of the world’s wealthiest individuals and celebrities.
The Minister of Finance, Mrs Kemi Adeosun, disclosed on Tuesday that the government would be investigating high net-worth individuals and companies who frequent offshore tax havens.
While fielding questions at an interactive session with newsmen on the use of offshore jurisdictions with favourable tax laws, Adeosun said that the government would look into tax avoidance by Nigerians.
She said that with the increasing global focus on illicit financial flows and tax evasion, offshore tax shelters no longer offer robust protection against tax authorities.
She added that the continued use of such schemes posed enormous risks for the users.
ALSO SEE: Offshore tax havens no longer offer protection – Adeosun
According to her, the Federal Ministry of Finance’s data mining project would use data provided on Nigerians from such leaks to crosscheck tax declarations.
She therefore advised Nigerians to review any existing tax planning schemes, including those in offshore tax havens, in order to take advantage of the Voluntary Assets and Income Declaration Scheme (VAIDS) to regularise their tax status where necessary.
Adeosun urged users of offshore tax shelters to promptly embrace the VAIDS scheme to regularise their tax status.
She said also that Nigeria’s low tax revenues were at variance with the lifestyles of a large number of its people and with the value of assets known to be owned by Nigerians resident around the world.
She urged Nigerians to cooperate with the Government by paying the right taxes to both the Federal and State Governments in order to provide the much needed funds that will improve the lives of Nigerians.
The Minister maintained that sanctions awaited defaulters who refuse the Federal Government’s offer of tax amnesty.
Adeosun added that those who failed to take advantage of VAIDS risked criminal prosecution and full payment of outstanding tax liabilities.
She said further that businesses, which untruthfully comply, would be liable as whatever was paid on the declared liabilities may be considered as part-payment of the outstanding sum later discovered by the authorities.