Politics

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

Published

5 years ago

October 11, 2018

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.”

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.

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Politics

Opposition party wins majority seats in Guinea Bissau’s parliament

Published

16 hours ago

June 9, 2023

Ifeoluwa Dada

After a thirteen months break in Guinea-Bissau’s parliament, the opposition coalition has won majority seats after the legislative elections held on Sunday.

Over 20 political parties and coalitions, including the former ruling PAIGC party and its rival MADEM G15, presented candidates for various constituencies across the country.

According to official results, the PAI Terra Ranka coalition, led by the former ruling PAIGC party, won 54 of 102 seats in Sunday’s poll, while the ruling Madem G15, won 28 seats.

The development alters the planned constitutional reforms of President Embalo which would have allowed him to consolidate power by ridding the country of its semi-presidential system.

Under the current political system, the majority party or coalition appoints the government but the president has the authority to dismiss it in certain circumstances, a situation that has led to political gridlock and infighting in the past.

The political stability of the country has been consistently threatened by military incursions with successful and failed coup attempts. The latest was in February 2022 when gunmen stormed a government compound where President Embalo was holding a cabinet meeting, in an attempt to stage a coup.

Politics

Algeria, Sierra Leone get non-permanent seat at UN Security Council

Published

3 days ago

June 7, 2023

Ifeoluwa Dada

Algeria and Sierra Leone, have been elected as non-permanent members of the the United Nations’ Security Council for 2024-2025.

The two countries are part of the ten countries elected for two years in the Council outside the five power bloc countries— the United States, China, Russia, France and the United Kingdom.

The countries replace Albania, Brazil, Gabon, Ghana and the United Arab Emirates and will join Ecuador, Japan, Malta, Mozambique and Switzerland who were elected last year.

For Sierra Leone, it’s a return to the council after 53 years. Its Foreign Minister, David Francis said it was “a great day for this small, progressive and confident country…which has successfully transitioned from war to peace.”

Guyana and South Korea were also elected unchallenged while Slovenia handily beat Belarus for the only contested seat.

An official of rights agency, Human Rights Watch, Louis Charbonneau remarked that “the vote in the General Assembly shows why a competition for UN elections is essential” after Slovenia edged Belarus for the seat going to Eastern Europe and obtained 153 votes, against 38 in Belarus.

“UN member states have undoubtedly decided that Belarus’ grave human rights violations at home and attempts to cover up Russian atrocities in Ukraine disqualify it from serving on the Security Council, a crucial body for ensuring human rights. humans,” he added.

Algeria got 184 votes, South Korea 180 votes, Sierra Leone 188 votes and Guyana 191 in a single candidate votes for four seat reserved for Africa, Asia-Pacific and Latin America/Caribbean.

There has been a long debate about the place of Africa in international relations. At the inception of the United Nations, only four independent African countries represented the continent when 50 representatives of different countries met in San Francisco, California, in 1945 to complete the Charter of the United Nations.