BEVERLY HILLS, February 03, (THEWILL) – The Federal Government of Nigeria has entered into Automatic Exchange of Tax Information (AETI) with some foreign countries, including the United Kingdom (UK), over overseas assets owned by Nigerians.
This was revealed by the Minister of Finance, Mrs. Kemi Adeosun, who spoke in Abuja during the presentation of Progress Report on Tax Laws Reform by the National Tax Policy Implementation Committee.
She expressed satisfaction with the data being supplied to Nigeria by foreign countries under the AETI, to which the country became a party in January 2018, and advised Nigerian users of offshore structures to take advantage of the Voluntary Assets and Income Declaration Scheme (VAIDS) to regularise their taxes before the expiration of the scheme on March 31, 2018.
“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,” she said.
“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.
“The federal government is also using the data to generate ‘nudge’ letters which are being sent to those identified as being potential tax defaulters.
“The offshore tax shelter system is basically over. Those who have hidden money overseas are being exposed and while 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.
“The needs of our people for development override any other argument against payment of tax,” she explained, stressing the need for sustainable revenue that could deliver infrastructural development for Nigeria and improve the tax to GDP ratio of the country.
The Minister 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.
In his address, the NTPIC Vice Chairman, Mr. Taiwo Oyedele, who presented the report, 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 disclosed 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 and catalyse the realisation of overall objectives.
According to him, the committee identified the seven major tax areas that would have the highest impact which are: 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.
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