Nigeria Expects $1 Billion from Tax Amensty

July 4, 2017 Taxation in Nigeria

tax evasion in NigeriaABUJA – Nigeria is tempting tax dodgers to come forward in exchange for immunity for harsh prison sentences and staggering penalties.

Nigeria has launched a new tax amnesty scheme intended to encourage taxpayers to come clean about their previously undeclared incomes and assets.

The new scheme runs from July 1st 2017 until December 31st 2017, and will grant participants immunity from prosecution for tax offences, and will protect them from harsh penalties and interest charges.

Under normal circumstances, taxpayers in Nigeria who commit tax fraud may be liable for imprisonment of up to 5 years, forfeiture of assets, and penalties of up to 21 percent of the taxes outstanding compounded per year.

To improve the effectiveness of the tax amnesty scheme, authorities have already begun compiling profiles of individuals who are known to be tax evaders.

The authority claims to know of several entertainers and individuals with multiple jobs who are not declaring their incomes, along with a significant number of individuals with lifestyles inconsistent with their tax payments, and people with unexplained assets.

The tax amnesty hopes to raise tax revenues equivalent to USD 1 billion over the course of the amnesty.

The government hopes to use the newly raised funds to boost infrastructure development and to reduce the country’s international debt burden.