Following the Federal Government’s decision to name, shame and prosecute tax evaders that failed to take advantage of the amnesty provided by the Voluntary Assets and Income Declaration Scheme, stakeholders have tasked the Minister of Finance, Mrs. Kemi Adeosun, to start the exercise with defaulting politicians, especially state governors.
A tax expert and fellow of the Institute of Chartered Accountants of Nigeria, Dr. Ayodele Esho, said, “I am not saying tax evaders in the public sector should not be shamed or prosecuted, but businesses owned by politicians and state governments should not be treated specially. The latter are the ones living beyond their means, because they gave themselves tax holiday.”
Contrary to Adeosun’s claims that the government was set to shame anyone that did not embrace VAIDS, another auditor, Mr. Tony Enweren, argued that the President Muhammadu Buhari administration lacked the political will to prosecute tax evaders, especially politicians who evaded personal income and company tax.
“From my findings, most evaders are either politicians or firms that receive contracts from the government (they evade tax with the help of tax collectors). We should start treating all Nigerians as equals. Most of these evaders cannot match their lifestyles, assets and incomes with their tax payment because they earn what I describe as ‘free money’,” he said.
Adeosun had, however, noted that the Federal Government had the political will to prosecute tax evaders once the amnesty programme was over by March 31, 2018.
According to her, government will name, shame and prosecute tax evaders who fail to take advantage of the amnesty provided by VAIDS to regularise their tax profiles.
The minister, according to a statement by her Media Adviser, Oluyinka Akintunde, also said that the Federal Government would strictly adhere to the confidentiality clause in the Automatic Exchange of Financial Account Information in tax matters.
This, she added, was in line with the guidelines of the Organisation for Economic Cooperation and Development.
“We will close the VAIDS at the expiration of the programme on March 31, 2018. And once the programme is closed, we will name and shame, and prosecute tax evaders,” she said.
On data sharing with foreign countries, the minister noted that the information sourced would be strictly used for tax purposes.
“The guidelines require that the automatic exchange of financial account information must be specifically designed with residence jurisdictions’ tax compliance in mind, rather than being a by-product of domestic reporting for it to be effective,” Adeosun added.
