The Federal Government has called on all Nigerians outside the shores of the country to key into the Voluntary Offshore Assets Regularisation Scheme for the infrastructural development of the country.
The Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN), made this known during the unveiling of the VOARS in Abuja on Tuesday.
He explained that the Scheme is a means of providing an opportunity for taxpayers or amnesty for tax defaulters to voluntary declare their offshore assets and income from sources outside Nigeria relating to the preceding 30 years of assessment and in return obtain some benefits.
Malami further explained that the signing of the Executive Order 8 by President Muhammadu Buhari on October 8, 2018 serves as a legal basis for the Swiss Consortium to approach third party holders of the fund with the view of assessing information of the owners.
He disclosed that the scheme is initiated by the Swiss Consortium with a view to facilitating regularisation of offshore assets owned by Nigerians, adding that it is expected that those funds owned by Nigerians that are not in the system will be voluntarily declared by the owners.
According to him: “This Nigeria Infrastructure Fund is aimed at imploring and encouraging Nigerians with offshore assets holdings to invest in the infrastructure with a view to increasing Nigeria tax base, bridging Nigeria Infrastructure deficit and inviting direct foreign investment for the development of infrastructure in Nigeria.”
Malami pointed that when funds are voluntarily declared by the owners, the Federal Government of Nigeria will deduct 35 per cent recoveries, while two and a half per cent will be charged as administrative fees for purpose of assessing the funds and 63 per cent will be registered in the system to become taxable in Nigeria.
He reiterated that the Infrastructure Fund will serve as a proposed investment facility where the Federal Government of Nigeria will have minimal investment, with the matching investments from banks and prospective international investors as well as Nigerians.
He added that holders of the 63 per cent are expected to invest into this fund with the view of financing Nigerians infrastructure and bridging the deficit, all attracting Foreign Direct Investment.
Malami highlighted some of the benefits to include permanent waiver of criminal prosecution for tax offences; waiver from tax audit of the declared and regularised offshore assets; and waiver of interest and penalties on the declared and regularised offshore assets.
Earlier, the Minister of Finance, Hayija Zainab Ahmed, emphasised that the culture of accountability and honesty in citizens to fully declare any income and assets owned will begin to grow and will encourage more citizens to readily come forward to declare without any threat of interrogation or prosecution.
Ahmed said this is coming at the time when Federal Government is particularly focused on growing government revenue, expanding the tax base and curbing corruption as well illicit financial flows.
She said: “As we all know, the importance of taxation to national development is critical. Despite having one of the lowest tax-to-GDP ratios in the world at 5 per cent, the number of Nigerians who regularly and truthfully pay their full taxes is significantly lower than it ought to be.”
She urged all citizens of the Federal Republic of Nigeria to pay their taxes promptly and to fully declare any income and assets to appropriate agencies.
The Representative of Swiss Consortium and former Attorney-General of Switzerland, Daniel Zappelli, explained that he used to be in charge of the Abacha loot in Geneva and had helped to freeze assets and repatriated millions of funds to the Federal Government of Nigeria.
Zappelli said as Tax Executives, they intend to support the Nigerian Government and also make tax payers happy.