The Joint Tax Board (JTB), along with the Federal Inland Revenue Service (FIRS), would start a “full scale Enforcement Exercise” on defaulting taxpayers following the expiration of the Voluntary Assets and Income Declaration Scheme (VAIDS) amnesty.
According to FIRS Executive Chairman Muhammad Nami, the activity, including prosecution, will have an impact on taxpayers who did not use the VAIDS,
“The Joint Tax Board (JTB), in conjunction with the Federal Inland Revenue Service (FIRS), is embarking on a full scale Enforcement, including prosecution of those defaulting taxable persons who did not take advantage of the Scheme.
“The defaulting taxpayers will be assessed to tax in accordance with the relevant provisions of the Tax Laws,” Nami, who doubles as JTB Chairman, said.
Taxpayers who had unpaid tax debts that had been previously declared under the Scheme were urged to settle up to prevent the cancellation of the reliefs.
The VAIDS, Executive Order No. 004 of 2017, gives taxpayers who were behind on their tax obligations the chance to voluntarily disclose their assets and income, pay the taxes owed on them, and in exchange receive perks like amnesty from prosecution for a year starting on July 1, 2017.
The plan had also stated that tax benefits like immunity from prosecution for tax offenses, immunity from tax audits, waivers of interest and penalties, and the option to spread out the payment of outstanding liabilities over a maximum of three years would be available upon taking advantage of the amnesty.
However, the Executive Order had warned that failure to comply with the plan would result in responsibilities for the guilty taxpayer, including liability to pay the principle amount in full as well as to pay all incurred penalties and interest.
Along with this, the taxpayer will also undergo a thorough tax audit, and any granted reliefs will be withdrawn.
