Over 800,000 companies in Nigeria, including some government contractors are being audited for alleged tax evasion, the Minister of Finance, Kemi Adeosun said.
“This is an unprecedented initiative that entails cooperation between federal and state governments,” the minister said.
Recent finance ministry statistics showed only 14 million active taxpayers in the country, out of an economically active population of 70 million, local online website, the Premium Times reports.
Of the 14 million, over 95 per cent were salary earners in the formal sector, but while only 241 people paid personal income taxes amounting to about $65,500 in 2016, Ms Adeosun said.
Mrs. Adeosun pointed out that a review of tax rates paid by the huge multinational and local operators, as well as the data on illicit financial flows revealed a pattern of systematic tax evasion at all levels.
In a way to deal with the issue, the ministry has started a database project to create accurate profiles of individuals and companies liable to pay taxes, the report said.
The project will combine data from the various government ministries, departments and agencies, including bank records, property and company ownership, as well as customs records.
She said the finance ministry has also retained the services of the world’s premier private investigation agencies to help trace overseas assets held by Nigerians and Nigerian companies.
The ministry has also launched a tax amnesty policy, “Voluntary Asset and Income Declaration Scheme,” which aims to provide taxpayers opportunities to regularise their tax status in exchange for a guarantee of no interest, penalties, tax investigation or further audit.
