By Nse Anthony-Uko
(Sundiata Post) — The Securities and Exchange Commission (SEC) said it will sanction companies and Capital Market Operators (CMOs) for not declaring their assets and profit from next year. The commission stated that companies by next year are required to show evidence of compliance and failure to comply will result in appropriate sanctions in accordance with the law.
This is coming on the heels of Acting President, Prof. Yemi Osinbajo executive order No. 004 “Voluntary Assets and Income Declaration Scheme” (VAIDS) that mandate declaration of profit and assets by quoted companies on the Exchange.
The Executive Order signed by the Acting President provides opportunity for taxpayers who are in default on their tax obligations under all relevant federal and state tax laws, to regularize their tax status relating to previous tax periods. It also meant for companies to declare their assets and Income from sources within and outside Nigeria, and pay the taxes due on them within a period of nine months.
According to SEC in a statement, “The Securities and Exchange Commission wishes to draw the attention of all Capital Market Operators and Public Limited Companies (Plcs) to Executive Order No. 004 “Voluntary Assets and Income Declaration Scheme” (VAIDS), signed by the Acting President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo on the 29th of June 2017.
“The Executive Order provides for an opportunity for taxpayers who are in default on their tax obligations under all relevant federal and state tax laws, to regularize their tax status relating to previous tax periods and to fully and honestly declare their assets and income from sources within and outside Nigeria, and pay the taxes due on them within a period of nine months, commencing from the 1st of July 2017 to the 31st of March 2018.
“Please note that while the statute 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. Consequently, all CMOs and PLCs who are in default or contemplated within the Executive Order, are expected to take advantage of the Nine Months grace period to rectify their tax status in compliance with the order.
“The Commission wishes to state that commencing from 31st March, 2018, all CMOs and PLCs 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 circular shall result in appropriate sanctions in accordance with the law,” the statement by SEC added.