Tunde Fowler, Chairman, Federal Inland Revenue Service
Tunde Fowler, Chairman, Federal Inland Revenue Service
Federal Government Thursday said it was not thinking about extending the nine months’ amnesty period granted to tax offenders under the Voluntary Assets and Income Declaration Scheme (VAIDS), saying the March 2018 deadline remains sacrosanct.
At a training workshop for professionals advising clients on participation in the VAIDS in Abuja, Executive Chairman, Federal Inland Revenue Service (FIRS), Mr Tunde Fowler, urged professionals to help sensitize their clients to participate in the scheme rather than wait for extension as such option was not under consideration.
According to Fowler, “Nigeria needs this scheme very badly. Other countries that have been in similar economic situation that the country is presently in had taken advantage of it”, wondering that with the pervasive attitude of tax evasion, there is a limit to the number of citizens that government can prosecute.
“This is a Nigerian project. Federal Government initiated it National Assembly adopted it”, he told the gathering of lawyers, accountants and tax professionals adding that six months is enough for those who are prepared to do the good thing to take advantage of the amnesty and voluntarily declare their correct assets.
“There will be no extension. No one should think along that line. Even if you give some people 10 years to regularise their taxes, they will not still comply. And someone who wants to perform his duties by paying appropriate taxes can do so in six months. It is the will that matters.
“However, you don’t have to pay your tax on the day you declare your assets. Tax authorities can work out a deferment arrangement where you can pay the tax on a later date as agreed. That is subject to their approval”, he explained.
He therefore urged individuals and organizations to seize the opportunity to declare their assets and pay appropriate taxes before the March 31, 2018 deadline during which there will be no interests, penalties, tax audits and prosecution.
“However, we know we need the support of stakeholders and that is why this training was organized.
“You have been invited to share your ideas with us as regards this scheme. We need you to point out areas we can improve on. We need your buy in.
“The issue of prosecution is not the best of successful options. How many companies will you close? How many people will you prosecute? We need your support to make this work well by speaking to your clients.
“Nigeria as a country needs this programme seriously as our tax compliance level is low and should remarkably improve, especially now that our revenues from oil has reduced. So we need to open up non-oil revenue sources to operate.
“So, VAIDS has come to stay. Many big countries have gone through this. It won’t be extended”, Fowler explained.
Earlier in goodwill message, President of the Chartered Institute of Taxation of Nigeria (CITN), Mr Cyril Ede had canvassed for an extension of the March, 2018 deadline to September 2018, to give more room for better compliance.
He described the scheme as something laudable that will ginger Nigerians to come forward without fear to regularise their taxes within the grace period.
“It is necessary for tax authorities to clean the Aegean stable to allow tax defaulters put their house in order.
Also in a goodwill message, Council member, Institute of Chartered Accountant of Nigeria (ICAN), Arinze Gabriel, who represented the president said VAIDS remains a good move, especially now that Nigeria needs multiple streams of revenue from non-oil sources.
“VAIDS is one of such reforms and it is welcome development. ICAN has informed all its members to embrace the scheme”, he said.