ISLAMABAD – The Federal Board of Revenue (FBR) has formally restricted its officials from initiating any proceedings against individuals who availed the Tax Amnesty Scheme under the Assets Declaration Act, 2019.
This protective measure was introduced through the Finance Bill 2019, aiming to provide legal cover and confidentiality to declarants of previously undisclosed assets, expenditures, and sales.
The Finance Bill proposed a new insertion, Section 120B, into the Income Tax Ordinance, 2001. This clause effectively bars FBR officials from pursuing tax-related actions against those who have disclosed hidden income or assets under the 2019 amnesty scheme and have duly paid the applicable taxes.
The new Section 120B, titled “Restriction of Proceedings”, clearly states that once a person declares previously undisclosed financial details under the Assets Declaration Act, 2019 and fulfills their tax obligations, FBR officials will not be allowed to conduct any further inquiries or investigations under the Income Tax Ordinance related to those declarations.
Furthermore, the law emphasizes strict confidentiality. It stipulates that, notwithstanding any other laws currently in force, the particulars of those making declarations under the scheme and the associated information shall remain confidential. Exceptions are made only for specific clauses of Section 216, but in general, FBR officials are forbidden from disclosing or using the declared information in any proceedings.
This move reflects the government’s commitment to protecting the interests of those who came forward under the amnesty program and encourages future voluntary compliance. The restriction on FBR action ensures that individuals and businesses can regularize their financial affairs without fear of retrospective penal action.
The FBR has also instructed its field officials to strictly adhere to the provisions of Section 120B and avoid taking any unauthorized steps. This measure is aimed at building trust between taxpayers and the tax machinery, ensuring that those who opted for the 2019 tax amnesty scheme are shielded from unnecessary scrutiny by FBR officials in the future.