SAGE, a market and technology leader for integrated accounting, payroll, and payment systems is giving taxpayers an opportunity to voluntarily declare all previously undisclosed assets and income, and thereby regularise their affairs with the introduction of the Voluntary Assets and Income Declaration Scheme (VAIDS)
|A statement by Magnus Nmonwu, Regional Director for Sage West Africa in Lagos on Friday said SAGE gives taxpayers an opportunity to voluntarily declare all previously undisclosed assets and income, and thereby regularise their affairs. VAIDS applies to all tax paying entities (individuals, companies, executors, trusts, partnerships and so on) and encompasses most tax categories, including company income, personal income, capital gains, VAT and stamp duty.
According to him, the scheme which is implemented by the Federal Inland Revenue Service (FIRS) in collaboration with the State tax authorities, aims to increase Nigeria’s tax base, improve the tax collection to GDP ratio and clamp down non-compliance. “This is a perfect opportunity to come clean for people and companies who have under-declared or failed to declare their assets and income,” he said.
“When the window closes on 31 March, companies and individuals that do not have their tax affairs in order may be subject to stringent penalties, punitive interest and even criminal prosecution. They may be named and shamed in a register of tax evaders, harming their personal and business reputations.”
Nmonwu stated further that the first step to compliance is getting your business’s books in order, irrespective of whether you’re running a registered company, earning freelance income or working in a partnership. The right accounting and payroll software can make it simpler to report accurately on revenue and expenses and to streamline tax submissions.
“Spreadsheets and other manual methods are no longer sufficient to keep up with the growing complexity of today’s tax environment,” Nmonwu says. “Automated software can streamline capturing of transactions, automate payroll calculations, processes and improve visibility into the business so you can comply more easily.
“It can also help you stay on top of annual changes to tax regulations that impact on payroll tax calculations and various changes in legislation. What’s more, the ability to generate tax certificates, reports and electronic payslip with the click of a button is a major time saver.”
Nmonwu concludes: “Nigeria’s federal and state governments are eager to expand their tax bases, and are investing heavily in modernising and streamlining tax administration. Companies can no longer risk non-payment of tax or incorrect remittances of taxes to the relevant government agencies, whether the reason is deliberate evasion or an accidental oversight.”
Sage is the market and technology leader for integrated accounting, payroll, and payment systems, supporting the ambition of entrepreneurs and business builders. It helps drive today’s business builders with the most intelligent and flexible cloud-enabled software, support, and advice to manage everything from money to people.