Voluntary Asset and Income Declaration Scheme (VAIDS) – Nigeria’s Tax Amnesty – voluntary assets and income declaration scheme (VAIDS), VAIDS form can be obtained from Voluntary Asset and Income Declaration Scheme official website: www.vaids.gov.ng., VAIDS is introduced by an executive order, it’s a voluntary asset declaration scheme. Voluntary Asset and Income Declaration Scheme is related to N-Power tax programme.
If you are still wondering what Voluntary Asset and Income Declaration Scheme (VAIDS) is all about or you do not know how to go about it, this post is for you. If you are also in need of a tax consultant, this post is for you.
Voluntary Asset and Income Declaration Scheme (VAIDS) – Nigeria’s Tax Amnesty
Table of Contents
Presidential Enabling Business Environment Council (PEBEC) is established by this present government to foster Ease of Doing Business in Nigeria. All of these are to drive the national economy to growth. Yet few months ago, it was stated by the government that only 214 rich Nigerians pay tax, and that others are dodgers.
What is VIADS?
VAIDS is a time-limited opportunity for you and every taxpayer to regularize your tax status relating to previous tax periods. No matter how long you have owed or underpaid your tax, VAIDS give you a time limit of 9 months effective from July first, 2022 to 31st March 2023 to regularize your tax payment discrepancies.
Two Important Conditions:
- You must voluntarily decide to fully declare your previously undisclosed incomes or assets.
- The declaration must be honestly done indicating that your declaration must be complete.
Voluntary Asset and Income Declaration Scheme (VAIDS) – Nigeria’s Tax Amnesty
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Your primary Benefits:
- You will benefit from forgiveness of overdue interest and penalties,
- You will have the assurance that you will no longer face criminal prosecution for tax offences or be subject to tax audit or investigations based on your previous tax discrepancies..
What VAIDS will do to the tax system: It..
- gives an opportunity to increase the nation’s general tax awareness
- increases tax compliance level in the citizenry
- will reduce the cost of compliance – tax management cost
- will generate more revenue for the nation, this will lead to
- increase in Nigeria’s tax to GDP ratio which stand at 6% currently.
- Massive infrastructural change and general economic growth
- Good governance etc.
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The Enabling Law:
Part of the Acting President Osinbajo executive order on the establishment of VAID on 29th June, 2022 reads:
“The Scheme shall provide a nine (9) month period commencing from the 1st of July 2022 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”.
“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 “.
Voluntary Asset and Income Declaration Scheme (VAIDS) – Nigeria’s Tax Amnesty
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Methods of Taxes Evasion include:
- Manipulating accounting records:
- Use of complex structures in transactions to evade taxes.
- Non registration for VAT,
- Charging of VAT without remitting to FIRS.
- Business operating without TIN
- Operating with unregistered business names
- Operating with unincorporated company names.
- Non payment of Capital Gains Tax (CGT) on asset disposals – many are not aware of this.
- On the other hand, many states (SBIRS) have lacked the machinery to accurately track the true income of their residents.
VAIDS in its official website states:
In my earlier post on the public misconception about Tax avoidance and tax evasion, I tried to educate you on the difference between the two. In another post on Tax planning, issues relating to tax avoidance and tax evasion were also highlighted.
Voluntary Asset and Income Declaration Scheme (VAIDS) – Nigeria’s Tax Amnesty
If you keep in touch with this website, you will get all tax information you need to run your business. As a Tax Consultant, if you contact me on +234 8034347851 or [email protected], I will be able to give you a personal attention. Issues relating to tax management are part of our package on business coaching programmes.
Let somebody around you know about this.
Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.
