The federal government on Thursday launched its
voluntary asset and income declaration scheme
(VAIDS) to broaden the country’s tax base and offer
incentives for tax evaders.

The scheme was backed by an executive order by
Acting President Yemi Osinbajo. Here is the full text of
the executive order:

“Whereas the Constitution imposes a duty on every
citizen to declare his/her income fully and honestly to
appropriate and lawful agencies and pay taxes
promptly;

Whereas every taxable person is under obligation to
voluntarily declare his/her income from all sources
within and outside Nigeria by filing annual tax returns,
computing same and paying the tax due to the tax
authority;

Cognisant of the desirability of inculcating in all
citizens, the ethics of responsibility to the nation,
accountability, and honesty;

Aware that the Federal and State Governments owe
citizens the duty of providing security, welfare and
development in all its parameters; and
Consequent upon the determination of the Federal and
State Governments to provide an opportunity for
taxpayers who are in default under all relevant
Statutes to voluntarily declare their Assets and Income
and pay taxes due on them and in return obtain some
benefits.

NOW THEREFORE, PURSUANT TO THE AUTHORITY
VESTED IN ME BY THE CONSTITUTION AS THE ACTING
PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA, I
HEREBY ORDER AS FOLLOWS:

1. The Federal Ministry of Finance shall set up a
Voluntary Assets and Income Declaration Scheme
(hereinafter referred to as “the Scheme”) for all
categories of taxpayers who have defaulted in
payment of taxes due and collectible subject to the
fulfillment of the terms and conditions as may be
stipulated in this Order and other subsequent
complementary regulations.

2. The Scheme shall provide a nine (9) month period
commencing from the 1st of July 2017 for taxpayers
who are in default of their tax liabilities to declare their
assets and income from sources within and outside
Nigeria relating to the preceding six (6) years of
assessment.

3. The Scheme shall encourage and provide an
opportunity for eligible taxpayers to:

a. regularise their tax status for all the relevant years;

b. pay all outstanding taxes;

c. prevent and stop tax evasion; and

d. ensure full tax compliance.

ELIGIBILITY TO PARTICIPATE

4. The Scheme is open to and targeted to all persons
and entities that are in default of their tax liabilities in
any way whatsoever, including those who:

a. earn an income or own assets but are yet to
register with the relevant tax authorities;

b. are registered taxpayers who have additional
disclosures to make or need to amend prior
disclosures; and/or are registered but have not been
filing returns;

c. have not been fully declaring their taxable income
and assets;

d. have been underpaying or under remitting;

e. are under a process of tax audit or investigation
with the relevant Tax Authority; and/or

f. are engaged in a tax dispute with the relevant Tax
Authority but are prepared to settle the tax dispute out
of court.

REQUIREMENTS FOR VALID DECLARATION

5. In order for an application pursuant to the Scheme
to be valid, the following requirements must be met:

a. the disclosures by the taxpayer should be voluntary;

b. the disclosure must be full, frank, complete and
verifiable in all material respects;

c. the disclosure must be made using the Voluntary
Asset and Income Declaration Scheme forms or in any
other form or manner as may be prescribed under the
Scheme; and

d. the assessment of tax payable must be carried out
by relevant tax authority.

RELIEFS/BENEFITS

6. Any taxpayer who truthfully and voluntarily declares
his assets and income, complies with the regulations
and guidelines and pays all outstanding taxes shall
obtain the following benefits.:

a. immunity from prosecution for tax offences;

b. immunity from tax audit;

c. waiver of interest;

d. waiver of penalties; and

e. option of spreading payment of outstanding
liabilities over a maximum period of three years as
may be agreed with the relevant tax authority.

Provided however that the remission or waiver granted
under these Regulations shall not prejudicially affect or
invalidate any court order or judgment already
obtained in respect of any default in payment of tax for
which interest and/or penalty have already accrued.

7. The reliefs referred to in paragraph six (6) above are
available in respect of all taxes administered by the
Federal Inland Revenue Service as well as those
administered by all State Boards of Internal Revenue.

CONSEQUENCES OF FAILURE TO COMPLY

8. Failure of any defaulting taxpayer to truthfully and
promptly take advantage of this Scheme shall at the
expiration of the Scheme result in the following
consequences:

a. liability to pay in full, the principal sum due;

b. liability to pay all interest and penalties arising
therefrom;

c. liability to be prosecuted in accordance with
relevant extant laws for tax offences;

d. withdrawal of any reliefs, which may have been
granted to the participant;

e. liability to undergo comprehensive tax audit; and

f. any sum paid in relation to the Scheme may be
counted as part payment of any further outstanding
tax in respect of undisclosed information.

CONFIDENTIALITY OF INFORMATION

9. All information provided by the taxpayer under the
Scheme shall be treated with utmost confidentiality in
accordance with the provisions of the relevant laws
save where it is stated otherwise.

10. Any tax official or persons duly authorised to
receive information under the Scheme who breaches
the confidentiality of information received or
exchanged under the Scheme without due
authorisation or in breach of relevant laws shall be
liable to prosecution under extant Federal and/or
State Laws.

GENERAL

11. This Executive Order is valid only for the period in
which the Scheme shall subsist, and relates to only
persons who have voluntarily declared their assets
and income within and outside Nigeria for the purpose
of ascertaining their outstanding tax liability.

Provided however that any rights and status properly
acquired by any participating taxpayer pursuant to the
Scheme shall vest to the benefit of the taxpayer to the
extent provided for by law.

12. This Executive Order shall be read in conjunction
with all extant Tax Laws, Regulations and Guidelines
as well as those that may be issued pursuant to the
Scheme.

13. This Executive Order shall take effect from the 1st
day of July 2017.”
Dated this 29th day of June, 2017.

Prof. Yemi Osinbajo, SAN, GCON
Acting President of the Federal Republic of Nigeria

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