The fresh leaks by #ParadisePapers revealing massive confidential documents exposing leaders and politicians across the world as operating offshore accounts and companies in Tax Havens, no doubt, has becone a revelation of the Century of sort.
From the Queen of England, Canadian Prime Minister, United States President, Turkish Prime Minister, Liberia’s Hellen Johnson Sirleaf to known celebrities are said to be operating offshore accounts.
The revelation was the outcome of huge data obtained by German newspaper, Suddeutsche Zeitung, and International Consortium of Investigative Journalists (ICIJ) from two offshore secrecy providers (Appleby and Asiaciti Trust) and 19 secrecy jurisdictions.
Back home in Nigeria, three known figures have been mentioned as operating shell companies in tax havens. They are Senate President Bukola Saraki and two key players in the banking sector – CBN Governor Godwin Emefiele and chairman of Zenith Bank Plc, Jim Ovia.
Our own PREMIUM TIMES, is the only Nigerian newspapers involved in the investigation that lasted for a year with more than 380 journalists from 96 media organisations in 67 countries participating. The data cover a period of nearly 70 years, from 1950 to 2016.
According to PREMIUM TIMES, Mr. Saraki “was found to sit on the board of an offshore entity while he was governor and later member of the Nigerian Senate in violation of his country’s code of conduct law.
“The politician set up Tenia Limited in the Cayman Islands —a notorious tax haven in the Caribbean— in 2001, and ran it until at least 2015 as director and sole shareholder. It remains unclear what business he transacted with the entity and what asset he might have used it to conceal.”
On their part, Godwin Emefiele and Jim Ovia, between 2007 and 2012, incorporated three offshore entities in tax havens, which acciording to Paradise Papers “were then used to acquire luxury jets and move funds around in cyclical manners that suggested tax avoidance schemes.
“The shell companies are Vitesse Asset Management SA (incorporated in Switzerland in 2007); Oviation Asset Management Limited (a Bermuda company established in 2009); and Oviation Limited (an Isle of Man company incorporated in 2012).”
ABOUT OFFSHORE ACCOUNT:
Simply put, an offshore account is a type of account you operate outside of your country of residence. Such account comes with lots of benefits including but not limited to:
* Protecting your savings against risk associated with interference by home government
* The offshore banks are more responsible custodians of your hard earned savings.
* Asset Protection: A foreign bank account can help make you a less attractive target.
* Offshore banks offer convenient online platforms for holding foreign currencies.
*’Offshore account is a great way to diversify your portfolio risk, protect your purchasing power, and internationalize some of your savings.
The major offshore jurisdictions are: Anguilla, Bahamas, Belize, BVI, Cyprus, Delaware, Florida, Gibraltar, Hong Kong, Latvia, St Lucia, Malta, Mauritius, Nevis, Panama, Ras Al Khaimah, Samoa, Seychelles, Singapore, Switzerland, UK and St. Vincent.
Independent checks reveal that an offshore account can be open between two to 10 days for as low as $950 ( N336,000 ) in Seychelles and as high as $5,950 (N2,125,380) in Switzerland.
Since the latest leaks by #ParadisePapers, business and financial pundits have been speaking and writing about “Legality” and otherwise of operating an offshore account.
The situation is not different in Nigeria as many have been asking whether Saraki, Emefiele and Ovia have committed any wrongdoing by operating offshore accounts and companies.
The trio have denied any wrongdoing.
“During the relevant period, our client and other senior executives utilized aircraft for business purposes.
“Our client understands that the leasing structures adopted were commonly and widely used in the aviation sector,” PREMIUM TIMES had quoted the CBN governor as saying through London-based law firm, New Media LLP.
Checks further reveal that operating an offshore account is “LEGAL“.
But, interestingly, some Nigerians who are not profiting from the current policy of the CBN, under Emefiele, appear to be politicising the #ParadisePapers by calling for his investigation.
Powerful people who want Emefiele out at all cost have also seen the fresh leaks as an opportunity to push ahead with their agenda of getting him off his seat not taking cognizance of the fact that President Muhammadu Buhari, is happy with what he’s doing in the CBN.
Reacting to the leaks on Tuesday, Minister of Finance, Mrs Kemi Adeosun, pointedly said that operating an offshore account in Tax Havens or the use of tax avoidance schemes if “LEGAL“, adding that Tax Evasion is not.
The Minister said, “The critical question to be asked of all Nigerian tax payers using offshore tax shelters will be whether all applicable taxes have been paid prior to the transfer of funds or assets to a tax shelter.
“If all taxes had been paid, then there will be no additional liability except tax payable on further income earned on those funds. However, if taxes had not been paid, then the use of such schemes is illegal.”
Mrs Adeosun also enjoined Nigerians to take advantage of Voluntary Assets and Income Declaration Scheme (VAIDS) scheme to regularize their tax status.
According to her, “In exchange for fully and honestly declaring previously undisclosed assets and income, taxpayers will benefit from forgiveness of overdue interest and penalties, and with further assurance that they will not face criminal prosecution for tax offences or be subject to tax investigations.”
With this submission by the Minister of Finance and the obvious fact that operating an offshore account or company is “LEGAL”, the call on the federal government to investigate CBN Governor Emefiele, in my considered view, is absolutely out of place and a deliberate attempt to distract him.
Some financial analysts and pundits have also submitted that the hues and cries about notable Nigerians operating offshore accounts and companies in Tax Havens is uncalled for and obviously borne out of ignorance and lack of knowledge about the subject matter.
Johnson Adelanwa, writes from Jos.
