FG waives criminal prosecution for owners of undeclared foreign assets

The federal government says it will grant amnesty and permanent waiver of criminal prosecution for tax offences related to offshore assets to those willing to voluntarily declare them.

Abubakar Malami, the attorney-general of the federation made this known on Tuesday at the unveiling of the Voluntary Offshore Assets Regularization Scheme (VOARS).

Malami explained that VOARS would also afford immunity to tax audit of declared and regularised offshore assets.

The AGF added that the said the immunity would shield the owners from tax offences, penalties and interests concerning such declared offshore assets.

VOARS was initiated by the Swiss Consortium with a view to facilitating the regularization of offshore assets owned by Nigerians.

In October, President Muhammadu Buhari had signed Executive Order 8 on the Voluntary Offshore Assets Regularization Scheme.

“It is expected that those funds owned by Nigerians that are not in the system will be voluntarily declared by the owners,” he said.

“When funds are voluntarily declared by the owners, the Federal Government of Nigeria will deduce thirty-five per cent (35%) recoveries.

“Two and half per cent (2 1/2%) will be charged as administrative fees for purpose of assessing the funds while sixty-three percent (63%) will be registered in the system to become taxable in Nigeria.”

In her comments, Zainab Ahmed, the minister of finance, said the federal government is committed to working towards achieving better tax compliance amongst its citizens.

She said the VOAR scheme would serve as an additional opportunity and mechanism for Nigerian citizens to continue to fulfill their tax obligations by extending the scope to offshore assets and foreign-sourced income.