SEC to sanction capital market operators, public companies on tax default 

THE Securities and Exchange Commission (SEC) in a circular posted  on its website said all Capital Market Operators (CMOs) and
Public Limited Company (PLCs) on a new executive order by the Federal Government of Nigeria to comply with the new rule of Taxpayers on Voluntary Assets and Income Declaration Scheme (VAIDS) or face penalty.

The Commission encouraged all taxpayers in the Capital Market to comply with the new Executive Order No. 004 on VAIDS
before the expiration of the 9 month grace period as specified by the FG.

According to SEC, “The Executive Order on VAID signed by the Acting
President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo on
June 29, 2017 stated that, taxpayers who are under all relevant
Federal and State Tax laws are advised to regularize their tax status
by honestly declaring their assets and incomes from sources within and outside Nigeria.”

Furthermore, the apex capital market regulator in Nigeria stated that commencing 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, the decree of limitations for a tax investigation for honest
returns is limited to six years; there is no limit where a fraudulent return has been submitted for assessment, SEC said.

Meanwhile, SEC advised all CMO’s and PLC’s to comply
with the Executive Order by taking advantage of the nine months
grace period to rectify their tax status in complying with the order.