Unic Press UK: The Nigerian government is embarking on a comprehensive review that will ascertain the degree of tax compliance of all contractors who had received any form of payment from the federal government and its agencies over the past seven years’.
The decision to carry on a broadened review of contractors’ tax compliance follows the startling information that was unearthed during a sampling carried out by the Federal Ministry of Finance. The ministry discovered that less that 20% of the sample [contractors] examined had accurately disclosed in tax returns the full income it received from the Federal Government of Nigeria. In several cases, there was no declaration. The ministry also detected that some of the Tax Clearance certificates that had been presented at the point of award of a contract had, virtually, no relation to the activities engaged on by a contractor.
The Ministry of Finance and the Office of the Accountant General of the Federation are now compiling a comprehensive record of all payments above ₦100 million over the past 7 years’, including the details of the beneficiary bank, payee bank accounts and other relevant details. And, all government agencies are required to provide, within 30 days’, the information they hold on payments made.
The Minister for Finance Kemi Adeosun reiterated the commitment of the Buhari-led administration to ensure a radical overhaul that will improve tax compliance in the country.
“It was a matter of concern that those who earned money directly from the government, which is both traceable and verifiable, still failed to pay the correct taxes thereon”, the Minister said.
While urging all businesses to make good of the current concessions being offered under Voluntary Assets and Income Declaration Scheme (VAIDS), Kemi Adeosun said: In the event that an audit or investigation is initiated, no individual or corporate body will be able to stop the process by rushing to participate in VAIDS.
“VAIDS has now been open since July 1st and some applications have already been received. If the tax authorities reach a company before such company has applied for VAIDS, then the full audit process will be conducted. This could result in penalties, interest and prosecution. So companies and individuals who know they will be affected are urged to quickly take advantage of VAIDS”, Adeosun stated.
