VAIDS: FG Outlines Process for New Taxpayers

The Federal Ministry of Finance has once more explained the process of participation in the Voluntary Assets and Income Declaration Scheme (VAIDS) to new taxpayers as well as existing ones that had not been paying appropriate taxes.

According to the VAIDS office in the Federal Ministry of Finance, the first step for new taxpayers is to apply for a Tax Identification Number (TIN), which will be fast-tracked. Existing taxpayers are required to register for VAIDS by filling the declaration form, obtainable from relevant tax authorities and available online.

The relevant tax authority can help calculate a taxpayer’s liabilities. In addition, the VAIDS office has also provided training to professionals in tax advisory services to educate taxpayers on their obligations.

A statement explained thatVAIDS, which provides a time-limited opportunity to regularise tax status, is open to every taxpayer liable to pay tax in Nigeria.

“It covers Nigerian residents, who had taxable undeclared income outside Nigeria and non-residents, who earned undeclared income derived from or accruing from Nigeria,” explained the VAIDS office.

Nigerians resident outside the country can declare online or appoint an agent resident in Nigeria to declare on their behalf.

The tax authority will, however, review tax information provided by declarers to ensure they are accurate. Information provided by declarers, said the Federal Ministry of Finance, is confidential and strictly for use under VAIDS.

Tax debtors who fail to declare at the expiration of the window in 31 March will face a variety of sanctions, including payment of interests and penalties as well as prosecution.