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The Federal Government has consolidated plans to sanction and jail entertainers and other professionals, who evade taxes at the expiration of the nine-month grace period it announced at the recently launched Voluntary Asset and Income Declaration Scheme (VAIDS).
The initiative was a fallout of 15 months, study during which the government through its various agencies and departments, including the private sector, have been gathered information on tax compliance of many celebrities and high net worth individuals in the country.
Competent sources at the Federal Ministry of Finance have worked with the banks, Nigeria Financial Intelligent Unit (NFIU), bureau de change (BDCs), Corporate Affairs Commission (CAC), to monitor the degree of tax compliance of many celebrities and high net worth individuals.
The government has also reviewed land ownership, ownership of exotic cars, yatchs, private jets and other luxurious properties of the group to understand the earnings and assets of many of these persons, relative to their taxes.
Following the huge revelations,the government launched VAIDS, a scheme that allows these celebrities and other Nigerians to declare their assets and income, and pay necessary taxes without interest, penalty or investigation.
The scheme, which will run for nine months, is a grace period for the celebrities to make amends of face the full wrath of the law, which could include jail term of up to five years.
For celebrities with houses in exotic locations worth millions of naira, and a tax record not consistent with the value of the property, the government advises that such celebrities “complete form VAI” and clarify sources of income for the house and pay necessary taxes within July 1, 2017 and March 31, 2018.
Celebrities who do not take advantage of the scheme risk “up to five-year imprisonment, get severe extra penalties: up to 100 per cent of the outstanding tax due, a compound interest at 21 per cent per annum, and foreiture of such assets”.
