The Federal Government has on Tuesday approved tax amnesty and permanent waiver of criminal prosecution to owners of the offshore assets that are willing to voluntarily declare them.
This was disclosed by the Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami, SAN
Ministers for Justice and Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami made this known in Abuja on Tuesday while unveiling the “Voluntary offshore assets regularization scheme (VOARS).”
According to him, the immunity package would shield the owners from tax offences, penalties and interests concerning such declared offshore assets.
He also explained that VOARS was initiated by the Swiss Consortium with a view to facilitating the regularization of offshore assets owned by Nigerians.
In his words; “It is expected that those funds owned by Nigerians that are not in the system will be voluntarily declared by the owners.
note further that when Funds are voluntarily declared by the owners, the
Federal Government of Nigeria will deduce thirty-five percent (35%) recoveries
while two and half percent (2 1/2%) will be charged as administrative fees for
purpose of assessing the funds while sixty-three percent (63%) will be
registered in the system to become taxable in Nigeria.
“The Infrastructure Fund will serve as a proposed investment facility, where the Federal Government of Nigeria will have minimal investment, with the matching investments from banks and prospective international investors as well as Nigerians, holders of the sixty-three percent (63%) who are expected to invest into this fund with the view of financing Nigerians infrastructure and bridging the deficient all attracting Foreign Direct Investment.
“I wish to solicit the cooperation of all Nigerians to key into this initiative. Just like the Voluntary Assets and Income Declaration Scheme (VAIDS), the rationale for the VOARS is to provide an opportunity for taxpayers or amnesty for tax defaulters to voluntary declare their offshore assets and income from sources outside Nigeria relating to the preceding thirty (30) years of assessment and in return obtain some benefit like:
“Permanent waiver of criminal prosecution for tax offences and offences related to the offshore assets, penalties and interests concerning such declared offshore assets.
“Immunity from tax audit of the declared and regularized offshore assets; waiver of interest and penalties on the declared and regularized offshore assets.
“Receive from Federal Government of Nigeria an Offshore Assets Regularization Compliance Certificate on the declared and regularized offshore assets; and be free to use or invest their duly regularized residual offshore assets in any manner in Nigeria or overseas, and be subject only to annual tax to Federal Government of Nigeria on the income earned on such residual offshore assets”.
Executive Order 8 on the Voluntary Offshore Assets Regularization Scheme that was signed by President Muhammadu Buhari on October 8, served as legal basis for the Swiss Consortium to approach third party holders of the fund with the view of assessing information of the owners.