SEC to sanction market operators and companies on tax default

The Securities and Exchange Commission (SEC) in a circular on its website has informed all Capital Market Operators (CMOs) and Public Limited Company (PLCs) on a new executive order by the Federal Government of Nigeria to comply with the new rule of Taxpayers on Voluntary Assets and Income Declaration Scheme (VAIDS) or face penalty.

The SEC is encouraging all taxpayers in the Capital Market‎ to comply with the new Executive Order No. 004 on VAIDS before the expiration of the nine-month grace period as specified by the FG.

In order words, the Executive Order on VAID signed by the Acting‎ President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo on June 29, 2017 stated that, taxpayers who are under all relevant Federal and State Tax laws are advised to regularise their tax status by honestly declaring their assets and incomes from sources within and outside Nigeria.

Furthermore, the SEC noted that commencing from March 31,‎ 2018, all CMO’s and PLC’s shall be required to show evidence of compliance with VAIDS or a clean tax status as part of their mandatory submissions to the Commission. Failure to comply with this public notice shall result in appropriate sanctions in accordance with the law.

The regulatory body, however noted the decree of limitations for a tax investigation for honest returns is limited to six (6) years; there is no limit where a fraudulent return has been submitted for assessment.

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