KARACHI: Persons may be allowed to avail tax amnesty at one percent for undeclared banking transactions of past five years.
According to draft of Tax Amnesty Scheme 2019, credit entries in a person’s own bank account is allowed at one percent of the total credit entries from July 01, 2013 till June 30, 2018 or 10 percent of peak credit entries during the said period whichever is higher.
A tax rate of 10 percent has been proposed for declaration of benami assets.
For foreign liquid assets repatriated into Pakistan the tax rate shall apply at five percent.
The government has also proposed to allow transactions into benami bank accounts at only two percent of the total credit entries from January 01, 2017 till April 15, 2019 or 10 percent of peak credit entries during the said period whichever is higher.
Any other assets have been allowed to avail amnesty at 7.5 percent of the prescribed value.
The valuation has been proposed for undisclosed income and assets for the purpose of Section 5(2) of Income Tax Ordinance, 2001.
For undisclosed bank accounts, the credit entries from July 01m 2013 till June 30, 2018.
For undeclared open plots and land, flat the valuation shall be cost of acquisition or FBR values on April 15, 2019, whichever is higher.
For undisclosed superstructure, the valuation has been proposed at Rs1,500 per square feet.
For undisclosed motor vehicles, the valuation shall be costs incurred till original registration.
For undisclosed gold, the valuation shall be Rs5,000 per gram.