FG rakes in N64.9bn from tax amnesty

Posted by News Express | 27 December 2019 | 697 times

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• Zainab Ahmed, Minister of Finance
The Federal Government, through the Federal Inland Revenue Service (FIRS), collected N64.94 billion from tax amnesty as at December 18, 2019.

Besides the amount collected so far, it also has an outstanding N6.82 billion, and another N23.10 billion, representing outstanding principal payable by FIRS, according to tax amnesty update .

Tax amnesty is a limited-time opportunity for a specified group of taxpayers to pay a defined amount in exchange for forgiveness of a tax liability (including interest and penalties) relating to a previous tax period.

Desirous of raising non-oil revenue sources, Vice President Yemi Osinbajo, while acting as president on June 29, 2017, signed Executive Order No. 004 authorising the Federal Ministry of Finance to set up a Voluntary Assets and Income Declaration Scheme (VAIDS) for all categories of taxpayers in default of taxes.

Registered taxpayers targeted with VAIDS were tax defaulters with additional disclosures or liabilities; those currently undergoing a tax audit or investigation by any relevant tax authority (RTA); and those that engaged in pending tax disputes, who prefer to resolve such disputes through out-of-court settlement.

In exchange, the taxpayers shall benefit from certain incentives, which include immunity from prosecution for tax offences, immunity from tax audit, and waiver of penalties and interest charges.

These are in addition to the option of spreading the payment of outstanding liabilities over a maximum period of three years subject to any agreement reached with the RTA.

The Federation Account Allocation Committee (FAAC), at its meeting held on October 17, 2019, requested FIRS to furnish it with update regarding tax amnesty.

Specifically, FAAC tasked FIRS to update it on tax amnesty period, seeking to know when it will end, how much was collected so far, how much was shared and the outstanding amount.

FIRS recently issued a seven-day notice to tax defaulters, warning defaulters of an impending nationwide tax enforcement that will bring them to book.


Source: News Express

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