KARACHI: A senior tax practitioner on Monday disclosed the Federal Board of Revenue (FBR) had got around 1,000 tax returns for the three-month tax amnesty scheme unveiled in April by the previous government.
The success of the tax amnesty scheme is contingent on the Supreme Court’s decision and it was expected the hearing of the case would commence in its Lahore registry on Monday, an English daily reported.
Pakistan Tax Bar Association (PTBA) President Abdul Qadir Memon shared very returns had been filed as the majority was awaiting the apex court decision regarding the tax amnesty scheme.
The previous PML-N government in April unveiled a tax-amnesty scheme, which allowed residents one-off tax benefits for bringing back undeclared local assets to the country and paying a five percent penalty on it.
For foreign liquid assets, the penalty was fixed at two percent (if brought back, or a five percent penalty if kept overseas or in foreign currencies) and undeclared fixed assets whether held domestically or overseas, with a three percent penalty.
Memon said if the apex court decided against the tax amnesty scheme, it would be a blow for those who had already declared their assets.
He added the FBR should publish a clarification stating the amnesty scheme was also for past years and it shouldn’t be for assets undeclared during the period July 2017 to April 2018.
Chief of Income Tax Policy, FBR Shabihul Ijaz said a majority of people were interested in availing the amnesty.
Mr Ijaz said the government via Finance Act 2018 gave a parliamentary go-ahead to amnesty for the declaration of local and foreign assets.
The tax amnesty scheme was applicable on assets as of April 10th and is scheduled to end on June 30th.
He said a person could avail amnesty for both foreign and local assets, but those people who had given up their Pakistani nationality were not eligible for this scheme.
The tax regulator can publish any clarification regarding time period and “such power (is) only vested with the political government.”
Mr Ijaz said the FBR didn’t have the powers to extend the last date for the scheme.
