The Minister of Finance, Mrs Kemi Adeosun said the Federal Government will from April 1st, 2018 start the prosecution of tax defaulters who fail to take advantage of the nine-month amnesty window provided by the Voluntary Assets and Income Declaration Scheme.
She said special tax courts would be established to prosecute those who failed to regularise their tax status under VAIDS.
Kemi Adeosun said these in Abuja during a live breakfast show, ‘Good Morning Nigeria’, aired by the Nigerian Television Authority.
VAIDS offers a grace period from July 1, 2017 to March 31, 2018 for tax defaulters to voluntarily pay back to government what they owe.
In exchange for full and honest declaration, the government promises to waive penalties that should have been levied and the interest that should have been paid on overdue taxes.
Also, those who declare their tax obligations honestly will not be subjected to any investigation or tax audit after the nine-month grace period.
The minister said the government was aware of the slow nature of the judicial system and would be setting up special courts to fast-track the adjudication of tax-related offences under the VAIDS initiative.
She noted that all incomes, assets and other properties earned and acquired from 2010 to date would be covered under VAIDS.
The minister added that assets, properties and incomes acquired or earned during the period must be accounted for by individuals and companies under the scheme.
She said that through the data mining programme being implemented under the ‘Project Lighthouse’ initiative, over 130,000 high profile individuals had been identified for scrutiny.
Adeosun explained that upon the expiry of the March 31 deadline, the Federal Government would go after the 130,000 high profile individuals.
The minister stated that the government, through the use of information technology, had gathered adequate data that would be used to prosecute the offenders.
She lamented that the lifestyles of many of the high net-worth individuals did not support their tax status, adding that the government was fully committed to effectively implementing the tax amnesty programme.
When asked whether the Federal Government would extend the tax amnesty programme beyond the March 31 deadline, she said there was no plan for any extension.
There has been pressure on the Presidency in the last few days by some former governors, top politicians, high profile individuals, business owners and professional bodies, among others, for an extension of the scheme.
But Adeosun stated that the government would not extend the tax amnesty programme.
