SEC to sanction capital market operators, PLCs on tax default

The Securities and Exchange Commission (SEC) has warned that it will begin to sanction capital market operators who default on tax, going forward.
In a circular posted on its website, SEC drew the attention of all Capital Market Operators (CMOs) and Public Limited Company (PLCs) on a new executive order by the Federal Government to comply with the new rule of Taxpayers on Voluntary Assets and Income Declaration Scheme (VAIDS) or face penalty.
On June 29, Acting President Yemi Osinbajo signed an executive order that would encourage citizens to voluntarily come forward and pay tax arrears without being punished.
The executive order gives impetus to government tax amnesty programme tagged- Voluntary Assets and Income Declaration Scheme (VAIDS) which seeks to boost the country’s very low tax base and raise much needed revenues.

 

In a statement, SEC said it is now encouraging all taxpayers in the Capital Market (i.e. CMOs and PLCs) 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  .

“In order words, 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,” the regulator added.
SEC further announced that beginning from March 31, 2018, all CMO’s and PLC’s would 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.
It however, noted that “the decree of limitations for a tax investigation for honest returns is limited to six (6) years” adding that, “there is no limit where a fraudulent return has been submitted for assessment.”

“In a nutshell, all CMO’s and PLC’s are hereby duly advised to comply with the Executive Order by taking advantage of the nine (9) months grace period to rectify their tax status in complying with the order,” SEC advised.

 

Onyinye Nwachukwu, Abuja