Politics

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

Published

6 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

Tunisian court mandates electoral commission to reinstate presidential contenders

Published

1 day ago

September 16, 2024

Ifeoluwa Dada

The highest court in Tunisia has issued an order requiring the electoral commission to re-enter two candidates for an October presidential election, cautioning that not doing so might compromise the election’s credibility.

The Administrative Court’s decision was made in rising political unrest in the nation of North Africa, where opposition parties and civil society organisations are concerned that a rigged election could give President Kais Saied a second term.

In the largest demonstration against constraints on liberties and the undemocratic electoral environment in Tunisia in two years, thousands of Tunisians came to the streets on Friday. Among the shouts screamed by the demonstrators was “Out with dictator Saied.”

Tensions increased after the electoral commission, citing purported flaws in their candidacy forms, rejected the court’s decision earlier this month to restore the candidatures of Abdellaif Mekki, Mondher Znaidi, and Imed Daimi ahead of the contest on October 6.

The president himself appointed the committee’s members, and major parties and civil society organisations claimed that this meant the president was using the inquiry as a weapon against his opponents.

Regarding the charges, commission president Farouk Bouasker has stated that “the commission is the only constitutional body entrusted with the integrity of the election” and refuted them. However, the commission must carry out its mandate and, if needed, revise the election schedule, the court ruled on Saturday. It’s unclear if this entails delaying the election or prolonging the campaign.

“Otherwise it would lead to an illegal situation that conflicts with the electoral law and the transparency of the electoral process”, it said.

Following their filing of a new complaint against the commission’s ruling, the court requested that Znaidi and Mekki be allowed to participate in the race. Daimi, the third contender, hasn’t yet submitted a second appeal.

After winning a democratic election in 2019, Saied strengthened his hold on power and started governing by decree in 2021—a move that the opposition has called a coup.

Politics

Under their new coalition, Mali, Burkina, Niger to launch biometric passports

Published

1 day ago

September 16, 2024

Ifeoluwa Dada

As part of their departure from the West African bloc in favour of a new Sahel alliance, military authorities in Mali, Burkina Faso, and Niger will implement new biometric passports, the countries’ leaders announced on Sunday.

Together, the three Sahelian neighbours run by juntas declared in January that they would be exiting the 15-member Economic Community of West African States (ECOWAS), despite efforts by the organisation to convince them otherwise.

In July, the three West African nations signed a confederation treaty demonstrating their will to forge on together outside of the regional political and economic bloc that has been pressuring them to revert to democratic governance.

Earlier this month, Burkina Faso declared that it will no longer be issuing passports with the ECOWAS emblem.

“In the coming days, a new biometric passport of the AES (Alliance of Sahel States) will be put into circulation with the aim of harmonising travel documents in our common area and facilitating the mobility of our citizens throughout the world”, Malian junta leader Assimi Goita announced on Sunday evening.

On the eve of the decision to form their alliance, the foreign ministers of the three nations will meet on Monday. He made this statement beforehand.

In addition, Goita announced that they intended to open a common information channel “to foster a peaceful exchange of information among our three states.”

Meanwhile, ECOWAS had warned that the 400 million residents of the 49-year-old bloc would lose their freedom of movement and access to the common market if the three countries were to exit,

Their withdrawal coincides with their troops fighting militants associated with the Islamic State and al Qaeda, whose insurgencies have caused instability in the area for the previous ten years and pose a threat to those bordering West Africa.