All Capital Market Operators, CMOs, and Public Limited Companies, PLCs are, from March 31, 2017, expected to show evidence of a clean tax status as part of their annual financial filings to the Securities and Exchange Commission, SEC.
The commission said in a statement by its spokesperson, Naif Abdulsalam, that the process would involve the provision of evidence of compliance with the Voluntary Assets and Income Declaration Scheme, VAIDS, or evidence of payment of all taxes as part of their mandatory submissions of the annual financial returns to the Commission.
The Commission warned of stiff sanctions and penalties against the CMOs and PLCs for failure to comply with new rules for taxpayers under the VAIDS adding that all taxes due were to be paid within nine months, commencing July 1, 2017 till March 31, 2018.
The VAIDS was launched by the Acting President, Yemi Osinbajo, on June 29 vide Executive Order, No. 004 of 2017, to authorise federal and state governments to allow defaulting taxpayers to voluntarily declare their asset and income, pay due taxes and obtain some benefits in return.
The order followed the formal launching of the VAIDS by the Federal Inland Revenue Service, FIRS to grant amnesty for voluntary tax defaulters in the country.
VAIDS provides an opportunity for taxpayers in default on their tax obligations under all relevant federal and state tax laws, to regularise their tax status relating to previous tax periods and to fully declare their asset and income from sources within and outside Nigeria.
SEC urged CMOs and PLCs to take advantage of the nine months grace period to rectify their tax status in compliance with the executive order.