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Tag: amnesty scheme

  • KCCI praises Imran Khan for providing relief to tax evaders through amnesty scheme

    KCCI praises Imran Khan for providing relief to tax evaders through amnesty scheme

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has praised Prime Minister Imran Khan for giving opportunity to tax evaders to document their black money at very low tax rates.

    KCCI President Junaid Esmail Makda stressed that in order to make the amnesty scheme successful, the government will have to ensure complete secrecy and confidentiality of the declarants’ data at any cost otherwise, they will not be able to achieve the desired results.

    He said that this amnesty scheme must not end up like the last one in which the highly classified data of those individuals who availed the previous amnesty scheme was shared with several government agencies including Federal Investigation Agency (FIA) and National Accountability Bureau (NAB) against the commitment to keep declarants’ info confidential.

    Referring to government’s assurance to keep this scheme easy to understand, he hoped that the amnesty scheme has been devised in such a manner that number of queries are kept minimal as it is a well-known fact that individuals will be reluctant to respond to excessive queries seeking details about the source of income and other such questions because of fears of getting into any kind of trouble in future.

    “The business community will be more than happy to become part of the documented economy but the government has to support them by protecting them from any kind of harassment from agencies/ institutions”, he added.

    He further stated that although the government has provided the opportunity to become part of the scheme until June 30 but this scheme must be extended for a longer period.

    After seeing the failure of previous amnesty scheme in which harassment by serving notices was widely witnessed, many individuals will be reluctant to declare their assets hence, the government must extend it and also has to take confidence building measures in due course to regain the trust of the masses.

    “After seeing some success stories of those individuals who avail this year’s amnesty scheme, I am sure many others will also come forward to benefit from the amnesty scheme so it must be made available for a longer period to tap such individuals”, he added.

    He was fairly optimistic that the scheme will help the government in bringing undocumented persons, assets and income into the documented sector. The scheme has the potential to bring in macroeconomic and fiscal stability in the economy.

    President KCCI further stated that this scheme offers a lucrative opportunity to pay just 4 percent for legalizing Benami Assets within the country and 6 percent for assets outside the country while 3 percent tax for undeclared sales which was a good offer for whitening the black money.

    While complimenting Chairman FBR Shabbar Zaidi for taking pro-business steps, Junaid Makda hoped that he would continue to do so throughout his tenure which would help in restoring the confidence of business community to a great extent and that in turn would lead to economic prosperity for the entire country.

    He advised Chairman FBR to formulate practical policies to increase the tax net and catch tax evaders in order to strengthen the country’s economy.

    The loyal taxpayers are being overburdened every year to achieve the revenue targets whereas those outside the tax net continue to enjoy all the luxuries of life without contributing a single rupee to the national exchequer, he opined, adding that FBR has been claiming of having details of all such tax evaders since many years but unfortunately no action has been taken so far to strictly deal with them.

  • Amnesty Scheme 2019 unveiled; 4pc tax for documenting hidden assets; applicable till June 30

    Amnesty Scheme 2019 unveiled; 4pc tax for documenting hidden assets; applicable till June 30

    ISLAMABAD: The federal government finally announced tax amnesty scheme 2019 for people having undisclosed assets to become part of documented economy. The scheme has been announced at four percent of tax to declared hidden assets other than immovable properties.

    The scheme is available for Pakistani citizens who have evaded taxes other than public office holders.

    The scheme will be applicable till June 30, 2019, Advisor to Prime Minister Finance, Dr Abdul Hafeez Shaikh said at a press conference while announcing the scheme after its formal approval by the federal cabinet on Tuesday.

    The advisor was accompanied by Special Assistant to the Prime Minister on Information and Broadcasting, Dr Firdous Ashiq Awan, State Minister for Revenues, Hammad Azhar and Federal Board of Revenue Chairman Syed Shabbar Zaidi.

    “Basic purpose of the scheme is not to generate revenue but to document economy and make the dead assets functional to promote economy,” Shaikh said.

    The advisor urged the business community to participate in this amnesty scheme to document their concealed assets.

    Inviting all such people who had their undeclared assets to take benefit from this scheme, the Advisor said this was the last chance as the government had already imposed the Benami Law under which all such benami properties would be confiscated by the government.

    He said efforts have been made to make the scheme easy in understanding as well as implementing.

    He said all assets were included in the scheme inside or outside Pakistan. All assets other than real estate, would have to pay four percent to get these legalized.

    In case of real estate, it would be evaluated at 1.5-time on existing FBR value, to bring it to market value he said.

    For Pakistanis living abroad, the advisor said that they can pay four percent to legalize their money subject to bringing cash or other kind into Pakistan.

    Otherwise they would have to pay 6 percent to legalize their assets, he added.

    Minister of State for Revenue Hammad Azhar said there was a lot of difference between the current and previous amnesty schemes as for the first time there was a condition for all asset declarer to become tax filer besides giving option to all such people to revise their balance sheet in their tax returns.

  • Federal cabinet approves money whitening scheme

    Federal cabinet approves money whitening scheme

    ISLAMABAD: The federal cabinet on Tuesday approved a scheme to whiten money through declaration of concealed / hidden assets.

    Prime Minister Imran Khan chaired the meeting of the federal cabinet. The cabinet approved the asset Declaration Scheme, 2019 besides discussing a 17 point agenda.

    Attorney General for Pakistan made a detailed presentation to Cabinet about the progress made in cases pending in the International Courts/Arbitration forums and suggested future course of action.

    The Cabinet was informed that from 2008 to 2018, the government of Pakistan has paid an amount of $100 million in lawyers’ fee in various cases while another $10 million is to be paid this year in lawyers’ fee.

    It was decided that legal advisors will be appointed in the main ministries including Ministry of Power, Petroleum, Communications, etc.

    Besides, measures would be taken to strengthen the office of the Attorney General to enhance its capacity to vet contracts/agreement.

    The cabinet discussed at length the prices of essential items The Secretary Planning inform the Cabinet about the measures being taking to eliminate middle man and providing relief to consumers.

    The Cabinet approved renewal of Regular Public Transport, Charter and Aerial Work Licenses of M/s PIACL.

    The Cabinet approved constitution of Board of Directors of PTDC. The Cabinet ratified Trade Agreement between the Governments of the Islamic Republic of Pakistan and the People’s Democratic of Algeria.

    The cabinet approved Memorandum of Understanding between National School of Public Policy (NSPP) and National Management Institute (NMI), Cairo.

    The Cabinet approved Property Tax Exemption in respect of Benevolent Fund Building, Zero Point Islamabad.

    The Cabinet approved appointment of Director on Board Directors of Deposit Protection Corporation.

    Zafar Mirza, Special Assistant to the Prime Minister on National Health Services briefed the Cabinet about progress made in reduction of Maximum Retail Prices of various drugs resulting in saving of Rs. 09 billion to consumers.

    The Cabinet approved salary package for Members of the Information Commission. The Cabinet approved secondment of Major General Omer Ahmed Bokhari, as DG Pakistan Ranger (Sindh).

    The Cabinet approved appointment of Ms. Tasneem Sultana, District and Session Judge as Judge, Special Court (Control of Narcotics Substances-I), Karachi. Appointment of Judge, Special Court (Control of Narcotics Substances-), Quetta was also approved.

    The cabinet granted exemption of duties/taxes on equipment donated by China. The equipment will be used for anti-narcotics efforts.

    The cabinet approved recruitment Rules of the post of Chairman of Pakistan Academy of Letters, Islamabad. The Cabinet approved policy on provision of Consular Assistance to detained and imprisoned Pakistanis abroad.

  • ACCA opposes tax amnesty, recommends enforcement on available information

    ACCA opposes tax amnesty, recommends enforcement on available information

    KARACHI: Association of Chartered Certified Accountants (ACCA) Pakistan has opposed tax amnesties and suggested the tax machinery to use available information with proper enforcement.

    “Tax Amnesties without proper penal clauses had been a failure. With the strengthening of OECD, they should be done away with and focus should instead be shifted on using the organization’s platform to retrieve necessary information and ensure proper enforcement of applicable laws and regulations,” the association recommended this in its tax proposals for budget 2019/2020.

    ACCA has presented detailed recommendations for bringing structural reforms in the taxation system while opposing any amnesty scheme in the presence of plethora of information maintained by the Federal Board of Revenue.

    For the structural reforms following measures have been suggested by the ACCA:

    • A single tax return for all taxation affairs of a taxpayer which all authorities can utilize to obtain the relevant data.

    • Harmonization of taxation laws in the country.

    • Resolving issues within IRIS to make it more user friendly

    • Integration of Federal and Provincial Revenue Authorities’ systems and databases

    Structural Reforms

    • Reducing the discretionary powers vested in FBR officials and shifting towards an objective criteria based approach

    • Developing the existing policy of differential tax treatments and incentives for filers while penalizing non-filers

    • Introducing impact on economic sectors (GDP development) and numbers of decisions upheld at the appellate forums along with collections target as a performance evaluation criteria for FBR functionaries

    • Ensuring time limits adherence as specified in the laws and rules particularly pertaining to refund matters

    • Facilitating the tax payers

    • Introducing confidence by establishing a swift response complaint resolution cell to deal with corruption and harassment of tax payers

    • Change in discretionary powers of FBR for moveable and/or immovable property including bank accounts attachment to improve ease of doing business and trust of taxpayers in the tax apparatus. Limit the attachment powers to only cases involving concrete information re asset disposal.

    • Ensuring no post remains vacant for more than two weeks to avoid delays in resolving tax-payers issues arising out of transfers, postings and additional charges, etc.

    • Limiting charge on a single post in FBR to a maximum of two (2) years to discourage the corrupt practices and collaborations.

    • Effective enforcement should be ensured by working on maximum automation of the taxation system.

    • Effective enforcement should be ensured by working on maximum automation of the taxation system.

    • Hiring and training of adequately qualified staff with ongoing capacity building should be focused on to ensure efficient and productive results from the tax apparatus.

    • Appointing independent officials as Commissioner Appeals ideally from the judicial service and qualified accountants practicing taxation from various bodies including ACCA.

    • ACCA is the largest Global accountancy body, which is now the largest in Pakistan too. Including ACCA members practicing taxation within the definition of accountant members for the Appellate Tribunal Inland Revenue will further strengthen the competition and meritocracy.

    • Hiring and training of adequately qualified staff with ongoing capacity building should be focused on to ensure efficient and productive results from the tax apparatus.

    • Limiting charge on a single post in FBR to a maximum of two (2) years to discourage the corrupt practices and collaborations.

    Related Stories

    ACCA suggests making FBR immovable property values in line with fair market value to stop asset undervaluation

  • April 30 last day for filing annual return; eyes on amnesty scheme for further extension

    April 30 last day for filing annual return; eyes on amnesty scheme for further extension

    ISLAMABAD: Tomorrow April 30, 2019 is the last day for filing income tax return for Tax Year 2018, which was extended many times since the actual filing date.

    Sources in on Monday said that the Federal Board of Revenue (FBR) may further extend the last date for filing income tax returns with the launch of proposed tax amnesty scheme.

    Previously the FBR on March 31, 2019 extended the last date for filing income tax returns by month up to April 30 through Circular No. 03/2019.

    It was second extension, when the FBR on March 15 extended the date for filing income tax returns up to March 31, 2019.

    The salary persons are required to file their annual returns by August 31 and business individuals and companies having special year required to file returns by September 30. Companies having normal tax year (July – June) are required to file annual return by December 31.

    For tax year 2018 the FBR previously extended the last date for filing income tax returns up to December 15, 2018 in case of salary individuals, business individuals, FTR taxpayers and companies having special tax year.

    Through Finance Act, 2018 a new section 182A was inducted to Income Tax Ordinance, 2001 under which the taxpayers who filed their annual returns after due date were disqualified to appear on Active Taxpayers List (ATL). The ATL is an important document to avail the benefits of reduced rate of withholding taxes. The restriction was also disabled the late return filers to avail advantage in purchasing motor vehicles and immovable properties.

    This restriction also reduced the number of return files massively by due date ended in December 2018. The FBR received income tax returns around 1.59 million as per new ATL for tax year 2018 issued on March 01, 2019. The FBR received 1.84 million returns up to February 28, 2019 for tax year 2017.

    Stakeholders have demanded the FBR to find out way for including late filers into ATL and increase the number of returns.

    Following the extension the date for filing returns on March 15, 2019 the FBR has received over 1.9 million returns for tax year 2018 up to April 15, 2019.

  • Amnesty scheme may be introduced for two months; may conclude before IMF program

    Amnesty scheme may be introduced for two months; may conclude before IMF program

    ISLAMABAD: The government is reportedly planning to roll out a much-anticipated tax amnesty scheme during the last two months of the current fiscal year, with a conclusion targeted before the initiation of the International Monetary Fund (IMF) loan program.

    (more…)
  • FBR directed to make proposed amnesty scheme more attractive

    FBR directed to make proposed amnesty scheme more attractive

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance, Revenue, and Economic Affairs, directed the Federal Board of Revenue (FBR) to modify the proposed tax amnesty scheme to attract a maximum number of people.

    (more…)
  • Hafeez Shaikh reviews proposed amnesty scheme

    Hafeez Shaikh reviews proposed amnesty scheme

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to Prime Minister on Finance, Revenue and Economic Affairs on Sunday reviewed the proposed tax amnesty scheme with officials of Federal Board of Revenue (FBR).

    A statement said that the adviser to PM on Finance, Revenue and Economic Affairs reviewed the proposed Assets Declaration Scheme – 2019 in detail with FBR.

    Discussion focused on the scope and the features of the scheme.

    The adviser instructed FBR to fine tune the scheme to make it simple to understand and easy to implement.

    He also emphasized that the objective of the scheme should be to make the economy more tax compliant and documented.

  • No decision on amnesty scheme, cabinet to consider tomorrow

    No decision on amnesty scheme, cabinet to consider tomorrow

    ISLAMABAD: The federal cabinet has discussed the planned tax amnesty scheme and it will decide in tomorrow’s meeting, sources said on Tuesday.

    The federal cabinet was met under the chair of Prime Minister Imran Khan. Finance Minister Asad Umar briefed the meeting about the proposed amnesty scheme.

    The sources said that the prime minister directed the ministry to take input from general public on such scheme besides before launching it there should be proper public awareness.

    In this regard a committee was formed headed by the finance minister. The committee will finalize the amnesty scheme.

    The sources said that the government was planning to introduce the amnesty scheme through promulgation of presidential ordinance.

    The sources said that the PTI government was in difficult situation regarding launching the amnesty scheme as the ruling party had taken mandate to bring tax evaders and looters behind the bar instead giving amnesty.

  • Cabinet to approve money whitening amnesty scheme today

    Cabinet to approve money whitening amnesty scheme today

    ISLAMABAD: The federal cabinet may consider and approve the new amnesty scheme today which is meant for whitening the ill-gotten money.

    The scheme may continue till the end of current fiscal year and it would be offered for domestic and foreign undisclosed assets. The scheme may be prolonged beyond July 2019.

    The amnesty would also be offered for gold and cash in bank accounts at different rate of taxes.

    After approval from federal cabinet the government would introduce the scheme through promulgation of presidential ordinance and subsequently would approve from the parliament through finance bill.

    Many stakeholders are not in favor of giving tax dodgers another opportunity through money whitening scheme as the domestic and international laws are strengthened against tax evasion.

    The FBR during the last three months also demonstrated efforts against tax evaders through confiscation of properties and other assets besides arrests in tax evasion.

    However, the FBR sources believed that the fear created during the past three months and data gathered regarding businessmen was sufficient to make the amnesty scheme a success.