#ParadisePapers: Tax declarations of listed Nigerians would be scrutinised- Adeosun

The Minister of Finance, Kemi Adeosun, Tuesday stated that tax declarations of Nigerians who have been listed in the Paradise Papers would have their prior tax declarations assessed to determine whether or not there has been full compliance.

Adeosun said this in an interactive session with the media Abuja while responding to questions on the use of offshore havens to with accommodating tax laws.

She noted that with the growing global focus on illicit financial flows and tax evasion, offshore tax shelters no longer offered secure protection against tax authorities.

Adeosun added that the continued use of such schemes posed enormous risks for the users.

On the Panama Papers and Paradise Papers leaks, the finance minister said they were just the beginning of what was likely to be an unraveling of the offshore tax haven system.

She revealed that the Federal Ministry of Finance’s data mining project would use data provided on Nigerians from such leaks to crosscheck tax declarations.

She advised Nigerians to review any existing tax planning schemes, including those in offshore tax havens, to take advantage of the Voluntary Assets and Income Declaration Scheme (VAIDS) to regularise their tax status.

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“The critical question to be asked of all Nigerian tax payers using offshore tax shelters will be whether all applicable taxes have been paid prior to the transfer of funds or assets to a tax shelter.

“If all taxes had been paid, then there will be no additional liability except tax payable on further income earned on those funds. However, if taxes had not been paid, then the use of such schemes is illegal,” she said.
Adeosun urged users of offshore tax shelters to embrace the VAIDS scheme to regularise their tax status.

She emphasised once again that Nigeria’s low tax revenues contrasted the lifestyles of a large number of its people and with the value of assets known to be owned by Nigerians around the world.

“It is a time-limited opportunity for taxpayers to regularise their tax status relating to previous tax periods.

“In exchange for fully and honestly declaring previously undisclosed assets and income, taxpayers will benefit from forgiveness of overdue interest and penalties.

“They will also have further assurance that they will not face criminal prosecution for tax offences or be subject to tax investigations,” she said.

While urging Nigerians to cooperate with the government by paying the right taxes at both federal and state level, she said that sanctions awaited defaulters who refused the Federal Government’s offer of tax amnesty, including the full payment of outstanding tax liability and criminal prosecution.

Adeosun said further that businesses did not provide accurate information would be liable as whatever was paid on the declared liabilities might be considered as part-payment of the outstanding sum later discovered by the authorities.

On defaulters who failed to utilise the VAIDS window, the finance minister said such offenders would face criminal prosecution by the Federal Government.

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