the new VOARS, any taxpayer that complies

 

According to the new VOARS, any taxpayer that complies with the terms outlined therein would enjoy immun find ity to prosecution on tax related offences and enjoy waivers on interests and penalties.

“Any taxpayer who truthfully and voluntarily declares his offshore assets and income complies with the regulations and guidelines and either pays a one-time levy of 35% on the total offshore assets or pay: all outstanding taxes, penalties and interest after forensic house audit of their offshore assets and income shall obtain…immunity from prosecution for tax offences and offences related to the offshore assets, immuni business ty from tax audit, waiver of interest and penalties, and receive an Offshore Assets Regularization Compliance Certificate,” it says.

FREEDOM TO INVEST REGULARISED ASSETS

As part of the benefits for full compliance to the provisions of the scheme, government has said that participants who have been cleared will have free access to their assets, which can further be invested both in Nigeria and abroad.

According to the order, they will “be free to use or invest their duly regularized residual of their total offshore assets in any manner in Nigeria or overseas, and be subject only to annual tax on the income earned on such assets.”

As a caveat, however, if a court order has been given to a defaulter within the 30-year assessment period—that benefit would not apply.

“Provided however that the above mentioned reliefs are obtained only if the remission or waiver granted under the Regulations governing the Scheme shall not prejudicially affect or invalidate any court order or judgment already obtained in respect of any default in payment of tax for which interest and/or penalty have already accrued,” the order says.

BREACH OF CONFIDENTIALITY CLAUSE

During the duration of the scheme, no information provided by the defaulter must be made public by the recipients (tax authorities or other government officials). Any breach of confidentiality will lead to prosecution of the guilty party.

“All information provided by the taxpayer under the Scheme shall be treated with utmost confidentiality in accordance with the provisions of the relevant laws save where it is stated otherwise,” the order says.

“Any Nigerian official or persons duly authorized to receive information under the Scheme who breaches the confidentiality of information received or exchanged under the Scheme in breach of relevant laws shall be liable to prosecution under extant laws in Nigeria.”