Pkrevenue.com

Author: Faisal Shahnawaz

  • SBP relaxes tax non-filer condition

    SBP relaxes tax non-filer condition

    KARACHI: The State Bank of Pakistan (SBP) on Wednesday relaxed non-filer condition for depositing into to foreign currency accounts in order to facilitate declarants of tax amnesty scheme 2019.

    Referring Assets Declaration Ordinance, 2019 (ADO), the central bank said that the Ordinance had been promulgated with a view to provide for voluntary declaration of undisclosed assets, sales and expenditures, for the purposes of allowing the non-documented economy’s inclusion in the taxation system and economic revival and growth by encouraging a tax compliant economy/ culture.

    In terms of Section 8 of the ADO, the declaration made shall be valid if the foreign currency held in Pakistan declared under Section 3 is deposited into declarant’s own foreign currency bank account at the time of declaration and is retained in such account till 30th June, 2019.

    “It is clarified that notwithstanding any instructions to the contrary contained in the Foreign Exchange Manual, a declarant, including a non-filer can deposit foreign currency in cash into his/her bank account under the ADO.”

    Similarly, the provision of Foreign Exchange Manual, Chapter 6, para 1(vi) regarding deposit of foreign currency notes in foreign currency accounts exceeding USD 10,000/- (or equivalent in other currencies) in a single day, shall not be applicable to such deposits made under the ADO.

    However, the banks while accepting such deposits under the ADO shall obtain a copy of the declaration filed with the Federal Board of Revenue (FBR) by the declarant and accept the deposit only if the amount being deposited is equivalent to the amount declared in the declaration filed with FBR.

    The banks shall ensure the confidentiality and secrecy of the information contained in the declaration submitted to them by declarants along-with deposit request.

    The banks shall submit to the State Bank of Pakistan (SBP) a statement as annexed hereto, within 7 (seven) days of close of the scheme.

  • FBR outlines action in post July 01 scenario; urges people to avail asset declaration scheme

    FBR outlines action in post July 01 scenario; urges people to avail asset declaration scheme

    ISLAMABAD: Federal Board of Revenue (FBR) has outlined course of action in scenario of post July 01, 2019 and some of motives are visible in the Finance Bill 2019.

    In a statement issued on Thursday, the FBR said that the primary objective of the government is to improve confidence/trust level between the taxpayer and the tax department.

    For that purpose some steps have already been undertaken which have been duly appreciated by the taxpayers.

    “However, major corrective actions will be taken from July 1, 2019. Tone and purpose (for the same) have been identified in the Finance Bill 2019 and others will be disseminated in the procedures, circulars and the administrative reforms which will be made in the Federal Board of Revenue post-July 1, 2019.”

    The primary theme of these actions is:

    a) Automation of business process

    b) Lack of personal interaction

    c) Minimal possibility of abuse of powers and discretion by the tax authority

    In this process the first step being ‘Return Filing’ and the ‘Sales Tax Registration’, being automated without any personal intervention/interaction.

    The FBR said that in the Finance Bill, 2019 it has been ensured that the functions of ‘Audit’ which should an exception on risk-based criterion, and not a norm, shall be undertaken by a person different from the persons involved in enforcement.

    Accordingly, the process of audit and enforcement will be segregated in due course. This is a major redressal, the FBR said.

    Furthermore detailed explanatory circulars will be issued that there should not be any possibility of abuse of section 122(5A) of the Income Tax Ordinance, 2001 and any other similar provisions in the relevant statutes.

    “It is also being ensured that first appeal stage be completely divorced from enforcement function.”

    Furthermore, the government is fully committed to ensure the concept of ‘Self Assessment Procedure’ in the true spirit and relevant steps are being undertaken to ensure that there is no possibility of harassment of the taxpayers.

    It is reiterated that the primary objective of the government is to create the confidence/trust amongst the honorable taxpayers. “It will be ensured that same actions materialize and concrete visible results are apparent. “

    On the other side, in the past tax efforts of the tax department were concentrated on the ‘Information Furnished’ by the taxpayers and there was not sufficient/independent ‘Data/Information’ of the economic transactions undertaken available with the government.

    The Government is concentrating its efforts to gather relevant information and is trying to further accelerate the process of gathering the data / information of the economic transactions including those being transactions in banking channels, electricity and gas connections, land records and other consumption data relating to expenses on travel, children education etc. as recorded in NADRA etc. and any other possible means in accordance with the international best practices.

    In these circumstances it will be difficult, rather impossible, for any person to undertake the economic transactions which remains outside the purview of fiscal/financial system of the country.

    “In these circumstance it is reiterated that any mis-apprehension about the manner of the operations of FBR in post July 1, 2019 and the availability of data with the government be dispelled with,” the FBR said.

    The FBR said that the Assets Declaration Scheme 2019 which is simple to be availed in order to live in a peaceful, comfortable, and a civilized manner for the betterment of Pakistan. It is considered that the context of the aforesaid paragraphs will be considered with respect to the decision for declaration under the Scheme to be made by June 30, 2019.

    The Assets Declaration Scheme 2019 will expire on June 30, 2019. It is reiterated that all persons having un-disclosed and un-declared assets and un-disclosed expenditure are strongly advised to avail the scheme.

  • SBP issues procedure for repatriation of foreign shares of Pakistan companies under asset declaration scheme

    SBP issues procedure for repatriation of foreign shares of Pakistan companies under asset declaration scheme

    KARACHI: State Bank of Pakistan (SBP) on Thursday issued procedure for repatriation of foreign assets held in the form of shares of a company incorporated in Pakistan, under Asset Declaration (Procedure & Conditions) Rules, 2019.

    The central bank said that in terms of Sub-Rule 6 of Rule 4 of the Assets Declaration (Procedure and Conditions) Rules 2019, issued by Federal Board of Revenue (FBR) vide S.R.O. 578(I)/2019 dated May 25, 2019, where foreign assets are shares of a company incorporated in Pakistan held by a declarant, whether beneficially or otherwise, it may be declared, in terms of Assets Declaration Ordinance 2019, subject to their repatriation into Pakistan and conversion into non-repatriable basis.

    In order to facilitate the declaration of shares of a company incorporated in Pakistan, under clause 4(6) of the above mentioned Rules, held by the declarant, whether beneficially or otherwise, on repatriable basis, the SBP allowed these shares to be repatriated into Pakistan and also notify the following procedure for conversion of these shares from repatriable basis to non-repatriable basis and transfer in the name of the declarant:

    Shares registered with SBP on repatriable basis:

    i. The owner of shares (i.e. the person in whose name the shares are already registered with SBP) will submit its application, duly forwarded by the respective company (the company whose shares are held by the non-resident on repatriable basis) through the AD (bank), to SBP for cancellation of registration of shares.

    ii. The application shall explicitly state that the shares are beneficially owned by the declarant (Name, Father Name, Residential Address, CNIC/Passport No.) who wants to declare them under the Assets Declaration Ordinance 2019.

    iii. The application shall also state that the request has been made to the company/company registrar/Central Depository Company of Pakistan Limited (CDC), as the case may be, for transfer of these shares in the name of the declarant on non-repatriable basis after cancellation of the registration by SBP, with an advice to confirm SBP upon transfer of these shares.

    iv. The application will be submitted along with following original documents:

    A. Original shares registration letter(s), earlier issued by SBP on registration of shares of the company in favor of the applicant on repatriable basis.

    B. A clear undertaking from the applicant that no repatriation of capital and profit/dividend accruing thereon will be claimed at any stage.

    C. Letter from company secretary, confirming that:

    a. Underlying shares (the shares whose registration is to be cancelled) are still held by the applicant.

    b. Applicant has requested to the company/company registrar/CDC for transfer of the shares in the name of the declarant on non-repatriable basis after cancellation of the registration by SBP.

    v. Upon receiving such request through AD, SBP will cancel the registration letter and inform the AD and the company along with an endorsement to FBR.

    vi. Upon transfer of shares in the name of declarant, the company/company registrar or CDC, as the case may be, will confirm SBP that the shares have been transferred in the name of declarant on non-repatriable basis.

    Shares acquired through Special Convertible Rupee Accounts (SCRA) under Para 9 of Chapter 20 of Foreign Exchange Manual:

    i. The legal owner (i.e. Foreign Portfolio Investor in whose name the Unique Identification Number has been registered) of the shares shall approach the AD (SCRA maintaining bank) with the request on the format attached as Form-I, that the shares are beneficially owned by the declarant i.e. natural person(s) (Name, Father Name, Residential Address, CNIC /Passport No.) who wants to declare them under the Assets Declaration Ordinance 2019.

    ii. The request shall also state to transfer the shares from the depository (CDC) account of legal owner to depository (CDC) account in the name of the declarant as a local/domestic shareholder (local securities account details will be provided) and delink the said holdings from SCRA in banks’ books. This will be applicable only to shares of Foreign Portfolio Investors, which are currently safe kept under the participant ID of the AD. The said transfer between the two accounts should be in accordance with the procedure prescribed by CDC for this purpose.

    iii. The AD will issue a certificate to SBP on the format attached as Form-II, that shares have been transferred to the declarant CDC sub-account in line with the instruction received from the client, excluding it from SCRA regime with copy to CDC and FBR for their information and necessary action. CDC will also confirm that consequent upon the request of the legal owner, the shares have been transferred in the name of declarant on non-repatriable basis.

    All procedural aspects in respect of above declaration including, but not limited to, (i) conversion of shares from repatriable basis to non-repatriable basis whether with CDC or otherwise and (ii) transfer and registration of shares from the name of present legal owner to the declarant shall be completed on or before June 30, 2019; and the declarant shall disclose the details of such shares, including name and number of such shares and their face value in his/her asset declaration under Assets Declaration Ordinance, 2019, the SBP said.

  • FPCCI may opt harsh decisions against proposed budgetary measures

    FPCCI may opt harsh decisions against proposed budgetary measures

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on has announced to take harsh decision against duty and tax measures proposed through Finance Bill, 2019.

    At a pressing briefing on Wednesday, Engineer Daroo Khan, President, FPCCI said that the decision would include closure of business and trade activities in protest.

    He said that the business community would share its reservations with the government. If the government declines to accept demands then option to protest is open, he added.

    The FPCCI president said that budgetary measures had would create hardship for all including business community as well as general public.

    The national chamber has identified many reservations on the budget 2019/2020. The apex chamber has constituted a committee on the Finance Bill, 2019.

    Engr. Daroo Khan demanded the government to restore sales tax zero-rating for export sector. Further, he pointed out that hike in tariff of gas and electricity would also make difficult for business to continue.

    He suggested the government that if it had been decided to abolish the zero rate regime then there must be assurance of releasing refunds.

    He also demanded the government to restore provision of audit once in three years as Finance Bill proposed to empower tax officials to conduct audit of a taxpayer any or every year.

    S M Muneer, leader of business community, however, said that the business community would not protest without meeting with government authorities.

    He said that a delegation of FPCCI would hold talk with Dr. Abdul Hafeez Shaikh, advisor to Prime Minister on Finance and Revenue on June 20.

    Muneer said that massive depreciation of Pak Rupee had created difficulties for businesses.

    Zubair Tufail, former FPCCI president, said that the proposed budget would encourage smuggling of goods.

    He said that banks should be asked for instant processing of refunds in case the zero-rating was abolished.

    Mirza Ikhtiar Baig, business leader, said that the business community was meeting with people in the government and opposition.

    He said that a delegation of Pakistan Peoples’ Party headed by its chairman Bilawal Bhutto Zardari was visiting FPCCI on June 22, 2019. But we are meeting first with the government tomorrow (June 21), he added.

  • FBR sets up Finance Bill 2019 anamoly committee

    FBR sets up Finance Bill 2019 anamoly committee

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday constituted an anamoly committee comprising tax professionals to identify legal flaws in Finance Bill 2019.

    Ashfaq Tola has been nominated chairman of the committee. Hamid Atiq Sarwar, Member IR Policy, FBR has been nominated as vice chairman.

    Other members of the committee are included: Abid Shaban, Zia Awan, Muhammad Awais, Asif Haroon, Abdul Qadir Memon, Amer Javed, Iftikhar Taj and Muhammad Rafique.

    The committee shall it’s report on June 21, 2019.

  • Demand, supply to decide dollar rate: SBP governor

    Demand, supply to decide dollar rate: SBP governor

    KARACHI: The demand and supply will decide the rate of US dollar, Reza Baqir, Governor, State Bank of Pakistan (SBP) said on Monday in his maiden press conference.

    “Let the market decide the dollar rate,” he said while replying to questions regarding exchange rate.

    He said that there were impacts of high inflation while increasing exchange rate. On the other hand if exchange rates are maintained then it will result in high debts, he added.

    At present the exchange rate is being decided by the market and it help in improving the indicators, the SBP governor said.

    The governor said that by controlling the exchange rate the imports had been reduced. He said that current account deficit had been reduced significantly. The deficit was at $19.8 billion. The deficit has been narrowed to $13 billion so far in the current fiscal year.

    He said that exchange rate was improved before Eid ul Fitr due to better inflows. However, payment pressure from corporate sector has against pressurized the local currency, he added.

    The SBP governor said that the economic team is bringing improving in the country.

    He said that in the past such budgets were presented which had failed to yield results.

    However, in the current budget relief measures have been announced under social protection program.

    Talking about the IMF program and its conditionalities, he said that people should wait till July 03, 2019 and after that all the documents related to fund programs would be made public.

  • KCCI seeks three month deferment for implementing unregistered buyers’ details

    KCCI seeks three month deferment for implementing unregistered buyers’ details

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday urged the government to defer implementation of obtaining information of unregistered buyers.

    (more…)
  • Rupee hits another historic low against dollar

    Rupee hits another historic low against dollar

    KARACHI: The Pak Rupee hit another historic low after depreciation of Rs1.11 against US dollar on Monday owing to payment pressure for oil import.

    The rupee ended Rs156.96 to the dollar as compared with last Friday’s closing of Rs155.85 in interbank foreign exchange market.

    The foreign currency market initiated in the range of Rs156.50 and Rs157.00. The market witnessed day high of Rs157.00 and low of Rs156.96 and closed at Rs156.96 in interbank foreign exchange market.

    However, the exchange rate in open market witnessed appreciation of rupee value.

    The buying and selling of dollar was recorded at Rs155.50/Rs156.50 from last Saturday’s close of Rs156.00/Rs157.00 in cash free market.

    The rupee witnessed depreciation for the last more than one and half years. The rupee was kept stable by the previous government in order to control the economic imbalances.

    However, keeping the rupee stable against dollar created balloon in the economy. Now the government is under negotiation with the IMF to bargain a new loan program, which is almost finalized. The IMF board is scheduled to meet next week to review Pakistan’s request for new loan program.

  • Customs intelligence Karachi announces auction of confiscated vehicles on June 19

    Customs intelligence Karachi announces auction of confiscated vehicles on June 19

    KARACHI: Customs Intelligence and Investigation has announced auction of confiscated vehicles to be held on June 19, 2019 at State Warehouse of the Directorate of Intelligence and Investigation, Karachi.

    According to details made available to PkRevenue.com following vehicles will be presented for auction on June 19, 2019.

    Auction of Left over lots (Rejected lots )and fresh lots will be held on 19th June, 2019.

    1. Toyota Crown Car, Reg no AA-7095, Model 1995.

    2. BMW Car, Reg no QZ-318, Model 2000.

    3. Mercedes Benz Car(E-500), Reg no AC-3077, Model 2002.

    4. Honda Inspire Car, Reg no GS-4012, Model 2003.

    5. Toyota Crown Car, Reg no AAJ-191, Model 2002.

    6. Mercedes Benz car, Reg no AAJ-106, Model 2001.

    7. Toyota Land Cruiser Jeep, Reg no BRN-124689, Model 1990.

    8. Toyota Premio Car, Reg no BFB-537, Model 2005.

    9. Toyota Premio Car, Reg no LT-737, Model 2003.

    10. Toyota Land Cruiser, Reg no JAF-935, Model 1994.

    11. Toyota Land Cruiser, Reg no IDL-531, Model 1993.

    12. Mercedes Benz Car(S-550), Reg no CZ-672, Model 2007.

    13. BMW Car760Li, Reg no BCP-523, Model 2002.

    14. Toyota Crown Car, Reg no BBL-439, Model 2004.

    15. Honda Accord Car, Reg no AXY-881, Model 2003.

    16. Toyota Surf Jeep, Reg no BD-0310, Model 2003.

    17. Toyota Mark-X Car, Registration plate/Mark no AQJ-399, Model 2007.

    18. Toyota Vitz Car, Reg no BFH-878, Model 2001.

    19. Mercedes Benz Car, Reg no AYB-709, Model 2008.

    20. BMW 530i Series Car, reg no LZG-105, Model 2004.

    21. Toyota Prado Jeep, Reg no LXW-7155, Model 1996.

    22. Toyota Premio Car, Reg no BDJ-715, Model 2002.

    23. Toyota Lexus Car, Reg no BDJ-700, Model 2005.

    24. BMW 320i Car, Un-Registered, Model 2003.

    25. Toyota Vitz Car, Registration plate/mark AA-483, Model 2001.

    26. Honda Civic Rebon Car, Registration plate/Mark YK-561, Model 2005.

  • MCC Appraisement East announces auction of confiscated vehicles on June 17

    MCC Appraisement East announces auction of confiscated vehicles on June 17

    KARACHI: Model Customs Collectorate (MCC) Appraisement East has announced public auction of confiscated vehicles on June 17, 2019 at Anti-Smuggling Organization (ASO) Office, Ghasbandar Kemari, Karachi.

    Following vehicles will be presented for auction:

    1. Mitsubishi Pajero Jeep (used), Reg.GS-2000, Model-1994,Chassis -V46-4034791/Engine-4M4D EXT T7UF.

    2. Used Toyota Lexus Car, Reg no UC-868, Model 2006(as per seat belt), Chassis JTHBG963905034702/Engine EMH-3 GR-FE158467-3485cc.

    3. Used Toyota Harrier Jeep, Reg no JAA-454, Model -1998-2999cc,Chassis no MCU-10-0013510, Engine no IMZ-FE6688090.

    4. Used Honda Saloon Accord Car, Reg no-BFT-418, Model-2003, 1990cc, Chassis no-CL7-3006339, Engine No-33101802.

    5. Used Mercedes Benz (AG), Reg No-AB-1001, Model-1991-02, 2999cc, Chassis no-WDB1240312B476728.

    6. Used Toyota Mark-II Saloon Car, Reg No-BVL-708, Model-2000, 1800HP, Chassis no-JZX110-6000922, Engine No-1JZ-075010.

    7. Used Toyota AXIO-X Car-White Colour, Reg No-BFE-068, 1496cc, Model-2007, Chassis no-NZE-141-6028039, Engine no, INZ-C0360547.

    8. Used Toyota Land Cruiser Jeep-Silver Colour, Reg No-BG-1131, Model No-1989, 3400cc, Chassis No-BJ60-023765, Engine No, 3B-1098887( As Per Reg Book) Diesel.

    9. Used Toyota Saloon Car XE, Model no-1999, 1500cc, Colour Red, Chassis No-AE-100-5171778, Engine-SA-FE-1500cc.

    10. Used Toyota Premio Saloon Car, Reg No-BFM-306, Model No-2004, Chassis No-AZT240-0017447, Engine No- 1AZ -4802097.

    11. Used Toyota Mark-X Car, Reg No- BBC-301, Model No-200used5, Chassis No-GRX-120-0042956, Engine No- 4GR-FSE-2499cc.

    12. Used Toyota Crown Royal Saloon (G) Car, Reg no- BEZ-998, Model 2005, Chassis No. GRS 182-1015624, Engine no 0123426-2994cc.

    13. Used Toyota Land Cruiser Jeep, Reg no. LEB-06-2007, Model 1996-2982cc-silver colour, Chassis No VZ95-0004948, Engine No. IKZC679955.

    14. Used Toyota Premio Car, Model 2005, Reg No. AAQ-945-Qta, Chassis No ZZT-240-5041761, Engine No. 1ZZFE-2200724, 1794cc, white colour.

    15. Used Toyota Surf Jeep, Model 2007, Reg no- BF-9925, Chassis No TRN210-0002425, Engine no 2TR-0341543, 2697cc, tearl white.

    16. Used Toyota Land Cruiser Jeep, Model 2004, Reg no JAG-345, chassis no KDJ121-0001884, Engine no 1KD-1184169,2982cc.

    17. Used Toyota Land Cruiser Jeep, Model-2003, Reg no BF-8255, Chassis no UZJ100-0144369, Engine no 2UZ-FE9091472, 4700cc, white.

    18. Used Mercedes Benz Saloon Car, Model-2007, chassis no WDD2193222A117436, Engine no 64292040471958, 3200cc, Black.