ISLAMABAD: A tax consultancy firm said the government’s tax amnesty scheme aims to withhold information of individuals availing could be in contravention of the Constitution’s right to information.
Tola Associates said as per Article 19A of the 1973 Constitution gives the right to information to every Pakistani citizen and the newly promulgated confidentiality clause included in the ordinance could be challenged in a court of law, reported Express Tribune.
On April 8th, Pakistan’s President Mamnoon Hussain via a presidential ordinance ratified into law the Voluntary Declaration of Domestic Assets Ordinance 2018, Foreign Assets (Declaration and Repatriation) Ordinance 2018, Protection of Economic Reforms (Amendment) Ordinance 2018 and Income Tax (Amendment) Ordinance 2018.
As per the Foreign Assets Ordinance 2018, every Pakistani national wherever they may be, except holders of public office as stated in the Ordinance (Annexure A) their spouses and dependent children, may declare their foreign assets aside where proceedings are pending in any court of law in respect of such assets.
This amnesty scheme will come into force on April 10th and will last till June 30th. Immovable assets outside the country can be declared at a tax rate of 3 percent, liquid assets not repatriated at 5 percent, liquid assets repatriated at 2 percent and for foreign currency accounts a tax of 2 percent will be charged.
Valuation of assets by the declarant would have to be made at a fair market value which is represented by the determined foreign asset price and declared by the individual himself and shouldn’t be lesser than their cost of acquisition.
Till the expiry of this ordinance i.e. 30th of June” provisions of this Ordinance shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force. All confidentiality provisions of the Income Tax Ordinance, 2001 and Right of Access to Information Act, 2017 shall apply to declarations made under this Ordinance and any person in breach of such provisions maybe fined and/or imprisoned,” read an A.F Ferguson report.
Tola Associates believes taking the recent 10 percent rupee depreciation into context, the rates of declarations for liquid assets not repatriated and immovable assets outside Pakistan rates of 3 percent and 5 percent were very low.
It highlighted payment of tax on these overseas held assets by Pakistani nationals would be counterbalanced by a revaluation of these mentioned assets in the rupee.
