BEVERLY HILLS, November 08, (THEWILL) – Nigerian Finance Minister, Mrs. Kemi Adeosun has said that there is nothing unlawful about companies and individuals operating in offshore tax shelters as well as tax avoidance schemes so far as those using them paid their fare share of taxes locally before the funds are moved into the shelters. She said tax avoidance schemes are legal but that tax evasion is a crime.
The minister, who provided clarity on the issue of offshore tax havens Tuesday at an interactive session with journalists in Abuja, however, revealed that the federal government would henceforth crosscheck tax declarations by Nigerian operators of offshore tax havens.
In this regard, she advised Nigerians to review any existing tax planning schemes, including those in offshore tax havens, in order to take advantage of the Voluntary Assets and Income Declaration Scheme (VAIDS) and regularise their tax status, where necessary.
According to a statement issued by her media aide, Mr. Oluyinka Akintunde, she was responding to a question about the legality or otherwise of the use of offshore tax shelters.
“The critical question to be asked of all Nigerian tax payers using offshore tax shelters will be whether all applicable taxes have been paid prior to the transfer of funds or assets to a tax shelter.
“If all taxes had been paid, then there will be no additional liability except tax payable on further income earned on those funds. However, if taxes had not been paid, then the use of such schemes is illegal,” the minister said.
Adeosun counselled users of such structures to seek professional advice, explaining further that her ministry was offering free training to professional advisers on VAIDS to enable them support their clients.
She urged users of offshore tax shelters to promptly embrace the VAIDS scheme to regularise their tax status, adding that Nigeria’s low tax revenues were at variance with the lifestyles of a large number of its people and with the value of assets known to be owned by Nigerians resident around the world.
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