Tax & Business Matters - Nigeria

Nigerian Government Issues Amendments to Order on Voluntary Offshore Assets Regularisation Scheme (VOARS)

Nigeria’s President has issued an executive order amending the Executive Order 008 of 2018 on the Voluntary Offshore Assets Regularisation Scheme (VOARS). The Amendment Order is officially known as the Voluntary Offshore Assets Regularisation Scheme Amendments 2019 (the Amendment Order).

Highlights

• The Attorney General of the Federation is required to set up a VOARS office within the Nigerian Financial Intelligence Unit (NFIU).
• Relevant persons who are in default are given a period of 30 months, commencing from 8 October 2019 to declare offshore assets acquired during the 30-years period from 1987 to 2017
• Declarants would be able to regularise their offshore assets by voluntarily paying a 35% one off fine/levy on the disclosed offshore assets.
• The Order also allows persons to elect to access any of the offshore assets regularisation facilities in Liechtenstein, Nigeria, UAE, Switzerland, UK or elsewhere by paying a 2% facility access fee.
• The Order imposes a penalty of 10% per annum on the value of the offshore assets, in addition to other penalties provided under the relevant laws on any domestic or foreign bank, asset manager or intermediary that cooperates with defaulters to conceal offshore assets.

Read our alert for more and download a copy of the Amendment Order below:

Download PwC Tax Alert_Amendments to Voluntary Offshore Assets Regularisation Scheme (VOARS)

Download VOARS Order No. 008 of 2018 (Amendment 2019)

FIRS issues public notices on resumption of tax audit, language of record keeping and waiver of penalty and interest

The Federal Inland Revenue Service (FIRS) has issued 3 Public Notices:

1) Resumption of Field Audit, Investigation and Monitoring Exercises

The FIRS is set to resume Audits, Investigations and Monitoring Exercises, which were earlier suspended due to the Covid-19 pandemic. The FIRS stated that the activities will resume in phases, and that field visits will commence from 30 June 2020.

2) Language of record keeping by Taxpayers

This notice is directing companies doing business in Nigeria to maintain and report transactions for tax purposes in English Language. In issuing this directive, the FIRS made reference to Section 63 of the Companies Income Tax Act (CITA), which empowers it to notify taxpayers to keep records and accounts in a manner which the Service considers adequate for tax assessment purposes.

3) Further Palliatives no. 5: Extension of deadline on Penalty and Interest waiver

This notice is in respect of waiver of penalty and interest for taxpayers who settle their outstanding tax liabilities by 30 June 2020. It is an extension to the previous exemption notice which lapsed on 31 May 2020 and was specific to tax payments arising from desk reviews, audits and investigations. In the latest notice, the waiver has been expanded to include liabilities from:

• Self-assessment fillings;
• Tax Audit, Tax investigation, and Desk review assessments; and
• Approved Installmental payment plans under VAIDS that have not been fully settled.

See the public notices here: Download FIRS public notices