Acting President Yemi Osinbajo has offered nine months grace period to tax payers to regularise their tax status or face criminal prosecution.
He made this known at the inauguration of the Voluntary Assets and Income Declaration Scheme (VAIDs).
The acting president said the scheme was specially targeted at taxpayers who had not declared their taxable incomes and assets.
According to him, the scheme would also be used to track those who don’t pay at all, and those who had been underpaying or under remitting.
Osinbajo said the scheme would cover all federal and state taxes such as companies’ income tax, personal income tax, petroleum profit tax, capital gains tax, stamp duties and tertiary education tax.
“The scheme will be operated from July 1, 2017 to March 31, 2018.
“It will be supported by an executive order, which I will sign into law today to offer a once in a life time opportunity to those in default to regularise their tax affairs.
“In exchange for full and honest declaration, tax evaders will receive immunity from prosecution, forgiveness of penalty and interest that is due on unpaid taxes.
“They will also get the full assurance that all information provided will remain confidential.
“In addition, participants in the scheme will not be selected for audit investigation for the period.
“We understand that some tax payers may have problems raising cash and for that reason, we have built in a system that will allow those owing to pay over a period of time.’’
A recent report of the Joint Tax Board showed that only 14 million people out of the estimated 69.9 million Nigerians, who are economically active, are paying taxes.
Accordingly, 96 per cent of the 14 million have their taxes deducted at source; this shows that they are government workers.
Also, only 214 Nigerians pay taxes of about N20 million annually and about 900 Nigerians pay N10 million as tax every year.
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