The Federal Government has commenced the Automatic Exchange of Tax Information (AETI), with some foreign countries including the United Kingdom Government, particularly on overseas assets held by Nigerians.
Kemi Adeosun, Minister of Finance, affirmed this on Friday in Abuja during the presentation of Progress Report on Tax Laws Reform stating that the data received with regard to overseas assets held by Nigerians will underpin a long term improvement in the nation’s tax to Gross Domestic Product (GDP) ration and will improve the life of the masses.
She said “The data received in Nigeria with regard to overseas assets held by Nigerians has been impressive and will underpin a long term improvement in the nation’s tax to Gross Domestic Product (GDP) ration, in turn, will improve life for the masses.The data on bank accounts, property and trusts, which has come automatically from a number of countries is being used to support the Voluntary Assets and Income Declaration Scheme (VAIDS) by allowing the tax authorities to check the accuracy of declarations received”.
According to her, the government had written to a number of nations to request specific information about offshore trusts and bank accounts held by its citizens and such data is to generate ‘nudge’ letters which are being sent to those identified as being potential tax defaulters.
The Minister advised users of offshore structures to take advantage of VAIDS to regularize their taxes before the expiry of the amnesty program adding that the moral argument against illicit financial flows, tax evasion and the strong international co-operation are such that every Nigerian tax payer should do the right thing.
“The offshore tax shelter system is basically over. Those who have hidden money overseas are being exposed and whilst Nigerians can legally keep their money anywhere in the world, they must first pay any taxes due to the Nigerian Government so that we can fund the needs of the masses and create jobs and wealth for our people” she said.
“The moral argument against illicit financial flows and tax evasion and the strong international co-operation are such that every Nigerian tax payer should do the right thing. The needs of our people for development override any other argument against payment of tax”.
She assured that the Federal Government would build a robust tax system and implement the recommendations by the National Tax Policy Implementation Committee (NTPIC) on tax laws reform.
Taiwo Oyedele, NTPIC Vice Chairman, who represented the Chairman, said the Committee considered three major policy documents namely; the Economic Recovery and Growth Plan (ERGP), the National Tax Policy and Ease of Doing Business Plan.
He explained that the Committee agreed that tax reforms should align with overall Government objectives as articulated in these documents, such that every action or recommendations would promote the realization of overall objectives adding that the seven major tax areas that would have the highest impact include: Company Income Tax (CIT), Value Added Tax (VAT), Customs & Excise Tariff (CET), Personal Income Tax (PIT), Pension Contributions, Industrial Development Income Tax Relief (IDITR); and Tertiary Education Trust Fund.
According to him, the proposed changes to the tax laws would achieve increase and diversify Government revenue, simplify paying taxes and doing business, promote Micro, small and medium enterprises, protect most vulnerable persons in the society, and remove obsolete, ambiguous and contradictory provisions in the law.
The executive orders include Value Added Tax Act (Modification) Order and Review of Goods Liable to Excise Duties and Applicable Rate Order, the proposed Amendment Bills are: Companies Income Tax Act (Amendment) Bill, Value Added Tax Act (Amendment) Bill, Customs, Exercise, Tariff (Consolidation) Act (Amendment) Bill, Personal Income Tax Act (Amendment) Bill and Industrial Development (Income Tax Relief) Act (Amendment) Bill.
Cynthia Egboboh, Abuja.
