SEC introduces VAIDS compliance for capital market operators, publicly listed companies

AS PART of Nigeria’s efforts to generate substantial income for self-sustainability through tax, the Securities and Exchange Commission (SEC) has widened mandatory submissions to include evidence of compliance with Voluntary Assets and Income Declaration Scheme (VAIDS) or a clean tax status to be submitted by Capital Market Operators (CMO’s) and Publicly Listed Companies (PLC’s) SEC in in a statement by Mr Naif Abdulsalam, the Head, Corporate Communication said the directive was on
the back drop of the new executive order by the Federal Government of Nigeria, to comply with the new rule of taxpayers on VAIDS. It said, “The SEC is encouraging all taxpayers in the Capital Market to comply with the new Executive Order No. 004 on VAIDS before the expiration of the nine-month grace period as specified by the FG. “The Executive Order on VAID was signed by the Acting President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo, on June 29, 2017. “It stated that taxpayers who are under all relevant Federal and State Tax laws are advised to regularise their tax status by honestly declaring their assets and incomes from sources within and outside Nigeria. “`The SEC also wishes to state that from March 31, 2018, all CMO’s and PLC’s shall be required to show evidence of compliance with VAIDS or a clean tax status as part of their mandatory submissions to the Commission. “Failure to comply with this public notice shall result in appropriate sanctions in accordance with the law.’’ However, it stated that the decree of limitations for a tax investigation for honest returns was limited to six years. It said there was no limit where a fraudulent return had been submitted for assessment to the commission. He reiterated that all CMO’s and PLC’s should comply with the order by taking advantage of the nine months grace period to rectify their tax status.