In May 2017, we communicated and warned that the Federal Government was going to implement a penalty rate for unpaid taxes on all employees, this penalty rate would increase from 15% to about 19% with effect from 1 July 2017.

Shortly after the official launch of the governments tax amnesty program named – Voluntary Assets and Income Declaration Scheme (VAIDS), the acting President Yemi Osinbajo signed the Executive order, that would encourage citizens to voluntarily declare all arears taxes without being forced.

In exchange for fully and honestly declaring previously undisclosed assets and income, the acting President has ruled that taxpayers will be granted forgiveness of overdue interest and penalties, in addition taxpayers will also not face criminal prosecution for tax offences, or be subjected to tax investigations.

Authorities have indicated that the VAIDS will run for nine months, beginning 1 July 2017 to 31 March 2018*.