Nigeria launched the Voluntary Assets and Income Declaration Scheme (VAIDS) effective 1 July 2017 by Executive Order No. 4 of 29 June 2017 to give defaulting tax payers the opportunity to make up their outstanding tax obligations from 2011 to 2016 in return for waiver of penalty and interest and criminal prosecution.
The Global Principles for a Responsible Tax Practicedeveloped by KPMG (available at https://responsibletax.kpmg.com/home and used herein with permission) setout our vision on how tax advisors are able to contribute to a responsible approach to tax for the common good. However, such an approach is equally applicable to all stakeholders, including the government, policy makers,tax administrators, taxpayers, civil society, the media and the public at large.
The responsibility imposed by Responsible Tax Practiceon stakeholders includes the following:
a) design and formulation of appropriate tax policies by the government to drive tax reform in accordance with its fiscal agenda and income redistribution objectives.
b) enactment of appropriate tax laws by the legislature from time to time to ensure efficient tax administration
c) tax administration in accordance with tax laws and policies of the government
d) avoidance of aggressive tax planning by tax practitioners in the provision of tax advice to their clients, which must be in accordance with the letter or spirit of the law, as the case may be, depending on whether the provision of the law is clear or ambiguouse. responsible tax planning within the law and payment of appropriate tax by tax payers as prescribed in the tax laws.
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