Tax Insight 1 – There are 8 tax types payable to the Federal Government, 25 tax types payable to each State Government, and 21 tax types payable to each Local Government of the Federation, making 54 tax categories in all, payable in Nigeria.
Tax Insight 2 – On the Voluntary Assets and Income Declaration Scheme (VAIDS), the Federal Government’s position is that nobody should owe or short pay the Government any tax whatsoever. It is expected that all taxpayers comply with all their tax obligations first before demanding accountability from the Government instead of the other way round. VAIDS is a time limited opportunity for everyone to come clean without being penalized or prosecuted.
Tax Insight 3 – Although the Executive Order on VAIDS gives immunity from tax audits for those declaring under VAIDS, if the tax man comes to audit you before you declare, you will not enjoy that immunity since your declaration will no longer be deemed as voluntary but triggered by the tax audit. The tax man goes about doing his work, and his work will not stop because of VAIDS. (**The exact words of the Honorable Minister for Finance at the VAIDS workshop last week).
Tax Insight 4 – When declaring under VAIDS, you can offset your unpaid taxes with any relevant withholding tax credit notes you have.