The Federal Government has put in place plans to grant amnesty to tax defaulters and permanent waiver of criminal prosecution for tax offenders and other offenses related to offshore assets to those willing to voluntarily declare same to the Federal Government.
This was disclosed by Mr. Abubakar Malami (SAN), the Attorney-General and Minister of Justice, on Tuesday, 2nd April,2019 in Abuja at the unveiling ceremony of the Voluntary Offshore Assets Regularization Scheme (VOARS).
Malami further explained that VOARS would also afford immunity from tax audit of declared and regularised offshore assets. Adding that the said immunity would shield the owners from tax offenses, penalties, and interests concerning such declared offshore assets.
Stressing further, the Minister disclosed that VOARS was a scheme that was initiated by the Swiss Consortium with a view to facilitating the regularization of offshore assets owned by Nigerians in diaspora.
More so, he called on the general public to take into cognizance that on October 8, 2018, President Muhammadu Buhari signed Executive Order-8 which addressed the Voluntary Offshore Assets Regularization Scheme (VOARS).
Reiterating the need for VOARS, Malami added that, the order served as a legal basis for the Swiss Consortium to approach third-party holders of the fund with the view of assessing information of the owners. This according to the Minister, would be done through his office in collaboration with the Ministry of Finance, Accountant General of the Federation as well as the Federal Inland Revenue Service.
Also, other collaborating partners are the Infrastructure Concession Regulatory Commission, Nigeria Intelligence Agency, Nigeria Sovereign Investment Authority, Central Bank of Nigeria and Debt Management Office.
On the benefit of VOARS , the Minister disclosed that when funds are voluntarily declared by the owners, the Federal Government of Nigeria will deduce thirty-five percent (35%) recoveries. Two and a half percent (2 and ½ %) will be charged as administrative fees for purpose of assessing the funds while sixty-three percent (63%) will be registered in the system to become taxable in Nigeria.
Commenting on the matter, Mrs. Zainab Ahmed, the Minister of Finance, disclosed that tax evasion had been a strong narrative, adding that the Federal Government had been very committed to working towards achieving better tax compliance amongst its citizens.
Adding that, the VOAR scheme would be an avenue for additional opportunity and instrument for Nigerian citizens both within and in Diaspora to continue to show commitment to their tax obligations.