Unlike many countries, US citizens and permanent residents (i.e. green card holders) are subject to tax in the United States even if they live abroad indefinitely until the green card is relinquished. This means all income earned at home and abroad must be declared for tax purposes. Parting with money is never easy, especially when there is no direct exchange of value as is the case with tax payments. As a result, a good number of stack their income and wealth abroad without reporting them to the US Internal Revenue Service (IRS). The US Congressional Subcommittee on Investigations estimated that these tax dodging schemes cost the Treasury as much as USD 100 billion annually.
On one hand, Nigeria must take steps to improve tax compliance including implementation of FATCA. On the other hand, taxpayers’ money must be put to work for the benefit of all. Organisations that will be affected by FATCA need to assess their exposure and implement measure to achieve compliance.