Yemisi Izuora
The Securities and Exchange Commission (SEC) has reminded all Capital Market Operators (CMOs) and Public Limited Company (PLCs) of the new executive order by the Federal
Government of Nigeria that all should comply with the new rule of Taxpayers on
Voluntary Assets and Income Declaration Scheme (VAIDS) or face
penalty.
The SEC is encouraging all taxpayers in the Capital Market (i.e. CMOs
and PLCs) to comply with the new Executive Order No. 004 on VAIDS
before the expiration of the 9 month grace period as specified by the
FG.
In order words, the Executive Order on VAID signed by the Acting
President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo on
June 29, 2017 stated that, taxpayers who are under all relevant
Federal and State Tax laws are advised to regularize their tax status
by honestly declaring their assets and incomes from sources within and
outside Nigeria.
Furthermore, the SEC wishes to state that commencing from March 31,
2018, all CMO’s and PLC’s shall be required to show evidence of
compliance with VAIDS or a clean tax status as part of their mandatory
submissions to the Commission. Failure to comply with this public
notice shall result in appropriate sanctions in accordance with the
law.
However, the decree of limitations for a tax investigation for honest
returns is limited to six (6) years; there is no limit where a
fraudulent return has been submitted for assessment.
In a nutshell, all CMO’s and PLC’s are hereby duly advised to comply
with the Executive Order by taking advantage of the nine (9) months
grace period to rectify their tax status in complying with the order.