Nigeria signs automatic tax information exchange with foreign countries

Nigeria said it has begun an Automatic Exchange of Tax Information (AETI) on overseas assets held by Nigerians with some foreign countries, including the United Kingdom in its quest to boost tax revenue 

“The data received in Nigeria with regard to overseas assets held by Nigerians has been impressive and will underpin a long-term improvement in the nation’s tax to Gross Domestic Product (GDP) ration, in turn, will improve life for the masses," Kemi Adeosun, Nigeria's finance minister said in Abuja on Friday while receiving the Progress Report on Tax Laws Reform.

Adeosun said she was pleased with the data being supplied to Nigeria by foreign countries under the AETI, to which the country became a party in January 2018.

“The data on bank accounts, property, and trusts, which has come automatically from a number of countries is being used to support the Voluntary Assets and Income Declaration Scheme (VAIDS) by allowing the tax authorities to check the accuracy of declarations received," she said.

According to her, the government iss also using the data to generate ‘nudge’ letters which are being sent to those identified as being potential tax defaulters.

She disclosed that Nigeria had written to a number of nations to request specific information about offshore trusts and bank accounts held by its citizens.

Adeosun counseled users of offshore structures to take advantage of VAIDS to regularise their taxes before the expiry of the amnesty programme.

“The offshore tax shelter system is basically over. Those who have hidden money overseas are being exposed and whilst Nigerians can legally keep their money anywhere in the world, they must first pay any taxes due to the Nigerian Government so that we can fund the needs of the masses and create jobs and wealth for our people," the minister said.

She noted that the e moral argument against illicit financial flows and tax evasion and the strong international co-operation are such that every Nigerian tax payer should do the right thing. 

"The needs of our people for development override any other argument against payment of tax,” she stated.