EFFECT OF VOLUNTARY ASSETS AND INCOME DECLARATION SCHEME (VAIDS) ON TAX COMPLIANCE IN NIGERIA

ALIYU, A.  ALMUSTAPHA; ABDULRAHMAN BALA SANI; B. AHMAD MUSBAHU; O. TAOPHIC BAKARE

ALIYU, A. ALMUSTAPHA Department of Accounting and Finance, Usmanu Dan Fodiyo University, Sokoto, Nigeria
ABDULRAHMAN BALA SANI Department of Accounting and Finance, Usmanu Dan Fodiyo University, Sokoto, Nigeria.
B. AHMAD MUSBAHU Department of Accounting and Finance, Usmanu Dan Fodiyo University, Sokoto, Nigeria
O. TAOPHIC BAKARE Department of Accounting and Finance, Usmanu Dan Fodiyo University, Sokoto, Nigeria

Keywords: VAIDS, motivational factors, tax compliance, amnesty

Abstract

Voluntary disclosure programme is an integral part of a compliance strategy which offer an opportunity to tax administration to permit previously non-compliant taxpayers to rectify their tax returns under the laid down procedure. This probably explained the rationale behind the recently Voluntary Asset and Income Declaration Scheme (VAIDS). VAIDS is a form of tax amnesty; it is a scheme that is expected to bring lots of benefits to Nigeria. Taxation serves as a stimulus to rejuvenating the economy of any nation but the Nigerian case is different because the income generated from taxes has been grossly repressed as a result of several contests. It is as a result of this that this study examined the effect of VAIDS on tax compliance in Nigeria. The study adopts the Survey Design approach. Purposive sampling procedures were used in collecting the data by means of a questionnaire and analyzed with Pearson Product Moment Correlation and Simple Regression. Findings revealed that VAIDS has a favorable and significant relationship with tax compliance with the co-efficient value of VAIDS below the standard at (0.05) and being (0.000) levels of significance. The study concluded that VAIDS can be used to increase tax compliance due to its significant effect. The study thereby recommended that taxpayers should work together with the relevant tax authorities to use this amnesty being offered to regularize their tax positions and to take advantage of the incentives and benefits offered by the government.