Anambra approves three-month tax waiver for business owners

Anambra State has introduced a three-month tax waiver aimed at encouraging businesses to regularize their tax affairs. The Voluntary Assets and Income Declaration and Tax Regularisation Scheme (VAIDS) runs from July 6 to September 5, offering a one-time opportunity for taxpayers to settle outstanding tax issues.

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The scheme offers a one-time opportunity for taxpayers to resolve their tax issues without incurring full penalties for non-compliance.

Commissioner for Information and Value Reformation, Law Mefor, announced the scheme, emphasizing that it provides a window for businesses and organizations that have not paid taxes or registered as taxable persons to do so without incurring full penalties. Registered taxpayers with undeclared income, assets, or liabilities are also encouraged to disclose them.

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He urged businesses and other organisations that have not paid taxes or fees, and those who have not registered as taxable persons, to take advantage of the three-month window to register and pay their taxes.

The state tax authority, led by Ikeazor Okonkwo, Chairman of the Anambra State Internal Revenue Service (AIRS), stressed that this initiative is crucial for compliance. Those who fail to make full and honest disclosures, or who have underpaid taxes, will face the full extent of the law. Importantly, individuals currently under tax audit, investigation, or dispute, and who have received Best of Judgement (BOJ) assessments without responding, will not be exempt from prosecution.

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He said those who failed to fully declare taxable income and assets, or who underpaid or under-remitted taxes or levies, would face the full weight of the law.

Eligible taxpayers who participate fully and honestly in the VAIDS scheme will receive a 100% waiver on penalties and accrued interest, along with immunity from prosecution. However, the AIRS will commence strict enforcement against all defaulting taxpayers immediately after the September 5 deadline. The government urges all concerned parties to utilize this period to regularize their tax status.

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He added that those currently under tax audit, investigation, or involved in a tax dispute with the AIRS, and who had been issued Best of Judgement (BOJ) assessments but failed to respond within the statutory time limit, would not be exempted from prosecution.