FG okays tax amnesty for defaulters of offshore assets declaration

The Federal Government disclosed that it has approved tax amnesty and permanent waiver of criminal prosecution for owners of offshore assets who are willing to declare such assets.

Speaking at the unveiling of Voluntary Offshore Assets Regularisation Scheme (VOARS) yesterday, Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami (SAN), stated that the immunity package would cover owners from tax offences, penalties and interests on offshore assets that are declared voluntarily.

The VOARS was initiated by the Swiss Consortium with a view to facilitating regularisation of offshore assets owned by Nigerians.

He noted that with the initiative, it was expected that Nigerians who own funds not captured in the system would voluntarily declare them.

“When funds are voluntarily declared, the Federal Government will deduct 35 per cent recoveries, while two and half per cent would be charged as administrative fees for assessing the funds, while 63 per cent would be registered in the system as taxable,” he said.

Malami, therefore, solicited the cooperation of all Nigerians to buy into the initiative.

“Just like the Voluntary Assets and Income Declaration Scheme (VAIDS), the rationale for VOARS is to provide an opportunity for taxpayers or amnesty for tax defaulters to voluntarily declare their offshore assets and incomes from sources outside Nigeria and in return obtain some benefits,” he added.

He explained that the benefits include permanent waiver of criminal prosecution for tax offences, immunity from tax audit of declared and regularised offshore assets and waiver of interests and penalties on them.

Malami added that the Executive Order 8 on the VOARS signed by President Muhammadu Buhari served as legal basis for the Swiss Consortium to approach third party holders of the funds with a view to assessing information on their owners.

He said third parties include banks, estate managers, auditors and accountants, and others, adding that his office is collaborating with the Ministry of Finance, Accountant General of the Federation and Federal Inland Revenue Service (FIRS), among others on the initiative.