The Securities and Exchange Commission (SEC) has urged Capital Market Operators (CMOs) and Public Limited Company (PLCs) to comply with the new rule on taxpayers on Voluntary Assets and Income Declaration Scheme (VAIDS), by the Federal Government of Nigeria or face penalty.
According to a statement by the Commission: “The SEC is encouraging all taxpayers in the Capital Market (i.e. CMOs and PLCs) to comply with the new Executive Order No.004 on VAIDS before the expiration of the nine month grace period as specified by the Federal Goverment.
“In order words, the Executive Order on VAID signed by the Acting President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo on June 29, 2017 stated that, taxpayers who are under all relevant Federal and State Tax laws are advised to regularize their tax status by honestly declaring their assets and incomes from sources within and outside Nigeria.
“Furthermore, the SEC wishes to state that with effect from March 31, 2018, all CMO’s and PLC’s shall be required to show evidence of compliance with VAIDS, or a clean tax status as part of their mandatory submissions to the Commission.” It added that failure to comply with the public notice shall result in appropriate sanctions in accordance with the law.
“However, the decree of limitations for a tax investigation for honest returns is limited to six (6) years; there is no limit where a fraudulent return has been submitted for assessment.
“In a nutshell, all CMO’s and PLC’s are hereby duly advised to comply with the Executive Order by taking advantage of the nine (9) months grace period to rectify their tax status in complying with the order,” it added.