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Nigerian government chases tax dodgers abroad. New policy targets foreign assets

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The President Muhammadu Buhari-led administration has unveiled a new system to ensure that all taxes on foreign assets of Nigerians due the federal government are remitted to the government’s coffers.

The move, the government believes, will strengthen efforts against money laundering and tax evasion.

The new system is captured in a new Executive Order tagged, ‘Voluntary Offshore Assets Regularisation Scheme (VOARS).’

The Executive Order (008) takes effect from October 8, the day it was signed by President Muhammadu Buhari.

According to Buhari’s media aide, Garba Shehu, by the new order, Nigerian taxpayers who hold offshore assets and income are expected to, within a period of 12 months, declare voluntarily those assets and pay taxes on them.

“When they do this, they should expect to derive certain specified benefits,” Shehu said in a statement Wednesday.

He also said that according to the order, “any taxpayer who truthfully and voluntarily complies with the conditions of the scheme, pays a one-time levy of 35 percent on the total offshore assets or pays all outstanding taxes, penalties and interest after forensic audit of their offshore assets and income shall obtain immunity from prosecution for tax offenses and offences related to offshore assets, among others.

“Equally, failure of any defaulting taxpayer to take advantage of this scheme shall, at the expiration of the scheme result in investigation and enforcement procedures concerning offshore assets anywhere in the world pursuant to information now readily available through automatic exchange of information between Nigeria and foreign countries.”

Read also: Trump tags Nigeria’s Buhari “lifeless.” What will he say of Uhuru Kenyatta?

He said in accordance with the new order, the federal government, through the office of the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, will set up a VOARS in Switzerland for all categories of taxpayers who have defaulted in the declaration of their offshore assets, payment of taxes due and collectible subject to the fulfillment of the terms and conditions as stipulated in the order, or any other subsequent complementary regulations that follow.

To avoid the abuse of this process, he said, the federal government makes clear that the “scheme is open to all persons, entities, and their intermediaries holding offshore assets and are in default of their tax obligations in any way, including those who are not already under investigation by law enforcement agencies in Nigeria or any other country and have not been charged with any crimes including theft of public funds or obtaining offshore assets through corrupt practices.”

In signing the order, Shehu said Buhari noted that under Nigerian law, every citizen has the duty to declare his or her income and assets and pay taxes on them but regretted that this, in most instances, had not been the case.

“The sad reality is that efforts to recover these taxes from defaulters through litigation are often frustrated by the complications caused by the change in the character and nature of such assets, insufficient financial intelligence, long delays in courts, among several other reasons,” the presidential aide said.

President Buhari is optimistic that the new scheme will help to facilitate the expedient regularisation of offshore assets connected to Nigeria and lead to “a new expanded tax base for the federal government, and also fund the Nigeria Infrastructure Fund in Switzerland,” he said.

Politics

Ugandan opposition politician abducted, wife says

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According to his wife on Wednesday, a well-known opposition leader from Uganda, Kizza Besigye was abducted during a book launch in Kenya over the weekend, taken to Uganda, and detained at a military prison in Kampala.

Despite his rejection of the results, Besigye has run against Ugandan President Yoweri Museveni four times and lost each time, claiming voting intimidation and fraud. He has been arrested several times in the past.

“I request the (government) of Uganda to release my husband Dr Kizza Besigye from where he is being held immediately,” said his wife Winnie Byanyima.

It was not immediately possible to get in touch with a Ugandan military spokesperson for comment.

“As police we don’t have him, so we can’t make any comment,” Ugandan police spokesman Kituuma Rusoke told Reuters.
A spokesperson for Kenya’s national police did not immediately respond to a request for comment.

Besigye’s Forum for Democratic Change (FDC) party, one of Uganda’s major opposition parties, had 36 members arrested by Kenyan police in July. They were then deported to Uganda and accused of terrorism-related charges.

On the social networking site X, Byanyima stated that Besigye, who served as Museveni’s doctor during the guerrilla war but later turned into a vocal opponent, was abducted on Saturday as senior Kenyan opposition leader Martha Karua was launching a book.

“I am now reliably informed that he is in a military jail in Kampala,” said Byanyima, who is the executive director of UNAIDS, the United Nations Programme on HIV/AIDS. “We his family and his lawyers demand to see him. He is not a soldier. Why is he being held in a military jail?”

Museveni’s administration has been charged with repeatedly violating the human rights of opposition leaders and followers, including extrajudicial executions, torture, and unlawful detentions.

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Sudan army chief Burhan meets US envoy

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The United States special envoy to Sudan has made his first trip to the African nation, hoping to bring an end to a horrific war and boost relief to millions of people in need.

After being appointed Washington’s ambassador to Sudan in February, Tom Perriello visited Port Sudan, the army-led government’s de facto capital on the Red Sea coast.

For the first time since the evacuation of the U.S. embassy in April 2023 due to the conflict between the Sudanese Armed Forces and the paramilitary Rapid Support Forces (RSF), a top U.S. official visited the nation.

“We feel an enormous amount of urgency to end this crisis and to ensure that we can … help to get food and medicine and life-saving support to the 20 million people plus that are in need,” a State Department official said before the trip.

Over 25 million people, or half of Sudan’s population, require help, according to the U.N., as hunger has spread to one area and over 11 million people have abandoned their homes.

Sudan’s sovereign council stated in a statement that Perriello spoke with tribal, government, and humanitarian figures in addition to Abdel Fattah al-Burhan, the country’s army head.

During what the council described as a “lengthy, comprehensive, and frank” discussion, the two men talked about how to provide humanitarian help and how to end the war through a political process.

“The U.S. envoy presented several suggestions which the head of the sovereign council agreed to,” the statement said.

Although the army declined to join U.S.-mediated peace negotiations in Geneva earlier this year, the meetings did obtain commitments from the warring parties to increase access to aid.

A power battle between the army and the RSF preceded a planned shift to civilian government, which is why the conflict broke out more than a year ago.

Perriello discussed “the need to cease fighting, enable unhindered humanitarian access, including through localized pauses in the fighting to allow for the delivery of emergency relief supplies, and commit to a civilian government,” a State Department statement said.

“Right now, I think there’s a key opportunity to build on the expansion of humanitarian aid,” the State Department official stated, emphasising the need for relief corridors to the most battle-ravaged areas, such as al-Fashir, Sennar, and parts of the capital Khartoum, even though the U.S. would continue to pursue a more comprehensive ceasefire and negotiations.

Last Monday, Sudan’s sovereign council announced that it would prolong the temporary opening of the Adre border crossing with Chad. According to relief organisations, this crossing is essential for delivering food and other supplies to famine-prone portions of the Darfur and Kordofan regions.

An RSF official stated at a press conference in Nairobi that while they were still amenable to peace, they had doubts about the army’s readiness.

“They do not listen to any language but that of the rifle, and so we will continue to talk to them in the language they understand,” said Brigadier General Omar Hamdan.

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