KARACHI: Federal Board of Revenue (FBR) has asked jewelers to declare their concealed assets by June 30 otherwise possessing black money or undocumented money will face harsh action.
The members of gems and jewelers association met senior tax officials at Regional Tax Office (RTO) – II Karachi on Tuesday related to ongoing tax amnesty scheme, sources told PkRevenue.com.
The tax officials apprised the businessmen to avail the scheme and declare their cash, assets and sales through the asset declaration scheme.
The members of gems and jewelers have been informed that the FBR had sufficient information about the undocumented gold availability in the market.
FBR sources said that the authorities had complied data of imported gold and subsequent export of jewelry.
The sources said that the import of gold was regulated through import policy order 2016 and exporters of jewelry had been allowed the import as per requirements.
However, it has been observed that this facility was grossly misused and large quantity of gold was being exported / smuggled to India, the sources added.
The FBR is set to launch mega crackdown against jewelers from next month after the conclusion of the amnesty scheme.
Tag: amnesty scheme
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FBR asks jewelers to avail amnesty for undeclared assets
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Business community wants secrecy of information under assets declaration scheme
KARACHI: Business community has urged Federal Board of Revenue (FBR) to keep information secret under assets declaration scheme in order to ensure confidence of declarants.
Saleem Parekh, Chairman Site Association of Trade and Industry, urged that all the information disclosed must be kept in secret and should not be shared with any other department. “The scheme will only be successful if no questions are asked with regard to the transactions,” he said at an awareness seminar on Asset Declaration Scheme organized at the association.
On the instructions of Chairman FBR Shabbar Zaidi, FBR officials have started awareness campaign in Karachi. In this regard Maqsood Jehangir, Commissioner IR, Large Tax Paying Units (LTU) and Kashif Hafeez (Addl. CIR, Zone 6, CRTO, Karachi) visited SITE Association of Industry which was attended by Executive Committee and large number of industrialists.
Kashif Hafeez gave detailed presentation about Asset Declaration Ordinance 2019 wherein he highlighted the incentives announced by the government that anyone under this scheme can declare their un-declared assets (immovable and moveable) and in this regard all FBR officials would help the business community.
Commissioner informed that under this scheme all information would be kept secret to safeguard the concerns of business community.
He informed that government has received detailed financial information from 26 countries and now it is impossible to hide moveable and immoveable assets. Therefore FBR is encouraging all stakeholders to declare their un-disclosed assets obtained before June 30,Bu 2019.
Saleem Parekh appreciated the presentation and insight knowledge of Commissioner. He said that Commissioner has responded each and every question of the industrialists with clarity which shows his authoritativeness on the subject.
He also appreciated the efforts of government to document the economy and extended his full support on behalf of members of SITE Association of Industry in this regard.
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Last date for asset declaration scheme not to be extended: Member IR
KARACHI: Ms. Seema Shakil, Member Inland Revenue (Operations), Federal Board of Revenue (FBR) on Monday said that date for asset declaration scheme will not be extended due to obligations under IMF loan program.
“The last date for availing asset declaration scheme is June 30, 2019. There will be no further extension in the last date as the IMF loan program will commence from July 01,” the member said at an even organized by Karachi Tax Bar Association (KTBA).
She said that present scheme was bargained with the IMF in order to provide people declare their undisclosed cash, assets and supplies before the tax machinery launch massive crackdown.
Ms. Seema Shakil said that the asset declaration scheme had been launched within short span of 8 to nine months considering bulk of information of Pakistanis having offshore investments received. Besides, information under OECD treaty has also been received to the authorities.
Further, the FBR notified rules for Benami laws in February 2019 empowering authorities to take action against people having assets in some other names.
It was demand from the stakeholders to allow such scheme before any harsh action. She said that it was unfair to take action without giving opportunity.
On the occasion, Zeeshan Merchant, former vice president, KTBA highlighted the major points of the asset declaration scheme.
He said that the scheme was expiring on June 30, 2019 and people were still trying to understand it.
He urged the tax authorities to extend the last date for availing the scheme as much of the time had lapsed due to Eid holidays.
Abdul Qadir Memon, President, Pakistan Tax Bar Association, Rehan Siddiqui, President, KTBA and other senior official of FBR were also present on the occasion.
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Finance Bill 2019: Law prohibits FBR officials from taking action against amnesty declarants
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.
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FBR warns of harsh action against undeclared assets from July 01
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday warned people of harsh action for possessing undeclared assets from July 01, 2019.
The revenue body said that those people having undeclared cash, assets and expenditures should declare by availing tax amnesty scheme.
FBR reiterates that the closing date for Assets Declaration Scheme is 30th June, 2019.
Therefore, it is advised to the persons intending to avail this scheme to ensure that the following reliable data relating to undeclared and undisclosed assets and expenditure is available with FBR:
a) Data of industrial and commercial gas and electricity consumers from various DISCOs and gas distribution companies has been procured to identify the persons who are chargeable to tax but have not been paying their due taxes.
b) That there is complete cooperation between the banks and the FBR on the availability of data relating to withholding taxes and other relevant information especially related to non-filers.
c) That FBR in collaboration with NADRA is providing access to the concerned persons (confidentially) for the transactions undertaken in the past in order to let the people know the transactions undertaken by them. This data will be available through secure channels from NADRA on demand subject to certain fee.
d) That it is planned that bearer certificates such as bearer prize bonds will be converted into registered prize bonds over a period of time as specified by the State Bank of Pakistan in coming months.
e) FBR is in contact with the land record authorities and relevant District Collectors with regard to shops and establishments for identifying the business establishments within their respective areas.
f) That administrative setup is being placed for operation of the Benami Law and it is expected to be fully operational from July 1, 2019.
In the light of the aforesaid points, it is advised that the concessions and benefits laid down in the Scheme be availed.
Furthermore in the Finance Bill 2019 it has been further reassured that no proceedings will be initiated against persons who declare their assets under the Assets Declaration Scheme and complete confidentiality shall be maintained with respect to assets declared in the scheme.
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Finance Bill 2019: Amnesty on immovable property purchase withdrawn
ISLAMABAD: The government has withdrawn a permanent amnesty for not explaining the source of investment in purchasing immovable properties.
The government has proposed to withdraw this provision through Finance Bill, 2019 as part of budget 2019/2020, presented on Tuesday.
The Federal Board of Revenue (FBR) in its income tax salient features said that 3 percent tax for not explaining the source of investment is being withdrawn.
Section 236W was introduced to Income Tax Ordinance, 2001 through Income Tax (Fourth Amendment) Act, 2016 dated December 02, 2016. This section was granted immunity from declaring source of investment for the purchase of immovable properties.
The FBR said that in Pakistan the Real Estate sector is one of the biggest sources of money laundering and is used as a parking lot for untaxed as well as ill-gotten money.
In view of this a wide range of steps have been taken to restructure the taxation of this sector.
The various steps being taken are as under:-
(i) At present, the Board has issued valuation tables of immovable properties in 21 major cities wherein such properties are valued at a value higher than the DC rates. The purchasers are also required to pay 3 percent tax on the difference between the DC value and FBR value of property to explain the source of investment to the extent of differential between FBR value and DC value. The rates notified by the Board are still considerably lower than actual market value. It is therefore intended that FBR rates of immovable properties would be taken closer to or about 85 percent of actual market value.
(ii) As the increase in FBR values of immovable property is going to increase the incidence of tax on genuine buyers and sellers, the rate of withholding tax on purchase of immovable property is being reduced from 2 percent to 1 percent.
(iii) At present, withholding tax on purchase of property is attracted only if the value of property is more than four million rupees. The threshold of four million rupees is being abolished and withholding tax on purchase is to be collected irrespective of the value of property.
(iv) At present, there is no withholding tax on sale of property if the property is held for a period of more than three years. Since capital gain is to be taxed under normal tax regime even beyond the period of three years, withholding tax on sale of property would be collected where the holding period is up to five years.
(v) Presently the law imposes restriction on registration or transfer of property having fair market value exceeding rupees five million in the name of a non-filer. The aforesaid restriction placed on purchase of immovable property is being withdrawn.
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FBR nominates focal persons for tax amnesty scheme
ISLAMABAD: Member Inland Revenue – Policy has been nominated as the chief coordinator for successful implementation of tax amnesty scheme 2019.
A notification issued on Monday, the FBR designated Inland Revenue officers for the implementation of the tax amnesty scheme 2019.
The following officers have been nominated as focal persons:
Dr. Hamid Ateeq Sarwar, Member Inland Revenue – Policy, Chief Coordinator;
Faiz Ellahi Memon, Chief Commissioner-IR, Large Taxpayers Unit (LTU) Karachi, Coordinator South covering provinces of Sindh and Balochistan;
Bashir Ullah Khan, Chief Commissioner-IR, Regional Tax office, Rawalpindi, Coordinator North, Province of Khyber Pakhtunkhwa, Islamabad Capital Territory and areas falling within the jurisdiction of RTO Rawalpindi; and
Asim Majeed Khan, Chief Commissioner-IR, LTU Lahore, Coordinator Central covering province of Punjab (excluding areas falling within the jurisdiction of RTO Rawalpindi).
The coordinators would further nominate focal persons in each RTO and LTU falling within their jurisdiction for the implementation of asset declaration scheme.
The FBR asked the chief commissioners-IR to transmit data relating to the asset declaration scheme on daily basis to the Chief Coordinator.
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PTBA urges FBR to extend date for filing income tax returns
KARACHI: Pakistan Tax Bar Association (PTBA) on Saturday urged Federal Board of Revenue (FBR) to extend the last date for filing income tax returns for Tax Year 2018 up to June 30, 2019 considering the recently launched tax amnesty scheme.
In a letter to FBR Chairman Syed Muhammad Shabbar Zaidi, the PTBA informed that the Asset Declaration Ordinance, 2019 was announced on May 16, 2019 and the last date for filing declaration is June 30, 2019.
The PTBA urged the FBR chairman to extend the last date for filing of return of income and statement of final taxation for individuals, Association of Persons (AOPs) and companies (other than public limited companies quoted on stock exchange) to June 30, 2019.
The last date was already extended by the FBR till April 30, 2019 through Circular No. 03/2019 dated March 31, 2019.
The apex tax bar said that the extension would encourage the new taxpayers to bring their house in order and come into the mainstream of economic activities by availing the benefit to become active taxpayers.
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SBP issues daily exchange rates for payment under amnesty scheme 2019
KARACHI: The State Bank of Pakistan (SBP) is issuing daily exchange rate for payment of duty and taxes under tax amnesty scheme – 2019.
The exchange rates are available at the FBR portal and can be accessed by visiting https://www.fbr.gov.pk/assets-declaration-scheme-2019/132009
The SBP has started issuing the exchange rates from May 27, 2019 in 10 major foreign currencies for conversion into Pak Rupee.
The available conversions for foreign currencies available in US Dollar (USD), Saudi Riyal (SAR), Japanese Yen (JPY), British Pound (GBP), Euro (EUR), Chinese Yuan (CNY), Swiss Franc (CHF), Canadian Dollar (CAD), Australian Dollar (AUD) and UAE Dirham (AED).
The latest following exchange rates are available on the FBR site is for May 28, 2019.
CURRENCY: BUYING RATE
AED: 40.7238
AUD: 103.6792
CAD: 111.3376
CHF: 149.0207
CNY: 21.7252
EUR: 167.5895
GBP: 190.5176
JPY: 1.3657
SAR: 39.8949
USD: 149.5900
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SBP issues procedure for payment of tax against foreign assets declaration
KARACHI: State Bank of Pakistan (SBP) on Saturday issued procedure for deposit of tax against foreign assets under Assets Declaration Ordinance, 2019.
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