The Voluntary Asset and Income Declaration Scheme (VAIDS), a programme under the Federal Inland Revenue Service (FIRS), has recorded a significant progress as tax receipts improved by 42 percent.
VAIDS’ half year revenue performance report, shows that the FIRS had already realised 75 percent of its total target for 2018.
In July, 2017, the Federal Government launched VAIDS as a way of raking in more revenue. The emergence of VAIDS outlines the Federal Government’s plan to increase tax awareness and compliance.
FIRS Chairman, Tunde Fowler, in December, 2017, said about N17 billion had been raised under the scheme, adding that another N16 billion was expected to be realised before the end of January, 2018.
President Muhammadu Buhari, had in April, 2018, approved the extension of VAIDS by three months. The Scheme which originally lasted for 9 months and expired on Saturday, 31st of March, 2018 was scheduled to run till Saturday, 30th of June, 2018.
In June, 2018, Fowler confirmed that VAIDS raked in about N30 billion from previous tax defaulters. While speaking in Abuja, Fowler said through the VAIDS’ amnesty window, the number of Nigerians paying taxes had increased from 14 million to 19 million.
VAIDS is a time-limited opportunity for taxpayers to regularise their tax status relating to previous tax periods and pay any taxes due. In exchange for fully and honestly declaring previously undisclosed assets and income, tax payers benefit from forgiveness of overdue interest and penalties, and the assurance they do not face criminal prosecution for tax offences or tax investigations.
The scheme is an initiative designed to encourage voluntary disclosure of previously undisclosed assets and income for the purpose of payment of all outstanding tax liabilities. The Scheme was implemented by the FIRS in collaboration with all 36 State Internal Revenue Services and the FCT IRS.