Taxation Of Offshore Assets: Highlights Of The Presidential Executive Order No. 8 Of 2018

VALID DECLARATION UNDER THE SCHEME

For an offshore assets declaration to be valid under the Scheme, the disclosure made by the concerned eligible taxpayers must: 

• be made voluntarily, full, honest, complete and verifiable in all material respects;

• be made through the Facility (the qualified intermediary);

• be made in accordance with compliance procedures required by Swiss authorities through the processes established by the Facility or in any other form or manner as may be prescribed by the Regulations governing the Scheme;

• consent to payment to the FGN of the 35% one-time levy on the offshore assets declared under the Scheme; and

• consent to assessment of future taxes payable on income earned on residual offshore assets by the relevant Tax Authority.
  

ELIGIBLE TAXPAYERS

According to the Order, all persons, entities and their intermediaries holding offshore assets and are in default of their tax liabilities in any way whatsoever are eligible to participate in the Scheme. Particularly owners of offshore assets who:

• are yet to declare them to the relevant authorities or have not been making full declaration of their taxable income/assets;

• have been underpaying or under-remitting the taxes due;

• though registered with relevant tax authorities, have additional disclosures to make or need to amend prior disclosures or have not been filing returns as appropriate;

• are under a process of tax audit or investigation with the relevant Tax Authority but are prepared to settle the tax dispute out of court;

• have applied for and received FGN Special Clearance to access the Scheme;

• are not already under investigation by law enforcement agencies in Nigeria or any other country and have not been charged with any crimes including theft of public funds or obtaining offshore assets through corrupt practices; and

• have been determined to be innocent after investigations or legal proceedings.

CONSEQUENCES OF NON-COMPLIANCE

As stated in the Order, any defaulting eligible taxpayer who fails to take advantage of the Scheme shall, after the expiry of the 12-month grace period, face the legal consequences of tax evasion, including:

• investigation, charges and enforcement procedures concerning offshore assets held by them anywhere in the world, as well as prosecution for tax offences under relevant extant laws;

• loss of right to plea bargain;

• liability to pay in full the principal sum due together with one-hundred-percent (100%) of all interest and penalties arising therefrom;

• liability to undergo comprehensive tax audit;

• withdrawal of any reliefs previously granted to the defaulting taxpayer; and

• the possible appropriation of any sum paid in relation to the Scheme as part-payment of any further outstanding tax in respect of undisclosed information.