Part of the activities featured on today’s Tax Thursday was an interactive session on the Voluntary Assets and income Declaration Scheme (VAIDS) by the Directorate of Property Tax, Kwara State Internal Revenue Service (KW-IRS). The session centered on the purpose, statutory framework, eligibility for participation and benefits of VAIDS as it is highlighted below.
Tax Compliance is the degree or extent to which a tax payer complies with the tax rules.
VAIDS as a voluntary disclosure program, is a onetime program with the objective of giving a window to non-compliant taxpayers to regularize their tax position in form of registration, returns and remittance.
Purpose of VAIDS
1. Poor state of tax compliance in Nigeria
2. Need to increase sustainable Government
3. Need to generate revenue for government
Statutory Framework for VAIDS
1. Regularize their tax status for all the relevant years, 6years by law and any length is welcome
2. Pay all outstanding taxes
3. Prevent and stop Tax evasion
4. Ensure full tax compliance
Eligibility to Participate
1. Person that have not been fully declaring their assets and income
2. Person that have not been paying their taxes at all
3. Persons that have been under-paying or under-remitting their taxes
4. New taxpayers who are yet to register with the tax authorities
5. Exist taxpayers who have new disclosures to make
Benefits of VAIDS
1. Participate will enjoy a waiver of penalty and interest if declaration is prompt and correct
2. Taxpayer will be free to transfer assets that they had previously held via nominee and other names into their own name.
3. The volunteer enjoys the window to realign with the tax laws and all relevant regulatory authorities.
4. Participants who declare honestly will be free from prosecution.
5. Tax authorities agree to an installment payment plan stretching up to 3 years
6. Declaration allows assets to be legally and formally held by the true owner.