FG Investigating 200 Firms, Individuals, Officials Over Tax Frauds, Forgeries- Minister

“Take Advantage of VAIDS, Regularise Your Profile Before Deadline”

Photo Caption: Permanent Secretary in Nigeria’s Finance Ministry, Dr. Mahmud Isa-Dutse; Finance Minister, Mrs. Kemi Adeosun and the Queen of Netherlands, Her Majesty, Zorreguieta Cerruiti, during the recent visit of the Queen to the Ministry in Abuja.

Barely two months to the end of the March 31, 2018 grace period for update of tax records, under its Voluntary Assets and Income Declaration Scheme (VAIDS), the Federal Government said it is already investigating over 200 cases of under declaration by taxpayers and demand for gratifications by tax officials.

The VAID is part of government’s efforts to raise the country’s abysmally low Tax-to-GDP ratio said to be one of the lowest across the world at a time the administration seeks to reduce over dependence on oil revenue.
A statement by Oluyinka Akintunde, Special assistant, Media to the Finance Minister, Mrs. Kemi Adeosun, in a statement, on Sunday said the government through the Finance Ministry has also began the process of ridding the nation’s tax administration and revenue collection system of dishonest operatives.

Mrs. Adeosun, while presiding over the meeting of the Whistleblower Unit in the Ministry and the Presidential Initiative on Continuous Audit (PICA), noted “cases of procurement of tax clearance certificates with no corresponding records or assessments in the tax offices. In such cases, although payments have been made but there are no underlying assessment. So automatically, we will flag such companies for investigation.

“The data analysis being undertaken within the Federal Ministry of Finance is readily exposing those who have obtained tax clearance certificates that are either forged or are not consistent with their true income levels.”
While warning against relying on such documents, the Minister advised those who have procured such tax certificates in the past to take advantage of the VAIDS to regularise their profile ahead of the deadline.

Sanitizing the tax administration and revenue collection system, she stressed, is part of the government’s efforts at enhancing the willingness of citizens to pay their taxes, confirming that the Ministry had secured the suspension of two senior Tax Officials in Delta and Benue States, following verified tips from Whistle-blowers.

According to her, “the Ministry is currently analysing over 200 additional whistleblowing tips including recordings between tax officials and potential taxpayers in which various practices, designed to reduce tax payable, were detailed.
“These practices include demands for personal gratification by tax officers, promises to procure backdated tax clearance certificates, and offers to conspire to reduce taxes payable,” she added.

To deal with the influx of whistleblowing tips, the Minister has directed the reorganization of the Whistleblower Unit to fast track reports relating to those in the revenue generating agencies.
“Encouraging our citizens to pay taxes is a matter of law but it is also a matter of trust. Those who work in our tax offices must therefore demonstrate the highest level of integrity.

“The Administration of President Muhammadu Buhari understands that to reduce our reliance on oil means every citizen must pay their taxes as and when due.

“However, people will not be encouraged to pay if they believe that those involved in the assessment are not transparent or are dishonest. We will continue to sanitise the system and also improve our controls,” the Minister stated.
She assured that the Ministry would continue to root out fraudsters from compromising the integrity of the tax administration and revenue collection system.

She lauded members of the public for volunteering valuable information including voice recordings and other evidence to the Whistleblower Unit in the Ministry.
The Minister further enjoined members of the public to desist from the procuring tax certificates that are inconsistent with their true income.

http://investdata.com.ng/2018/01/fg-investigating-200-firms-individuals-officials-tax-frauds-forgeries-minister/#more