KARACHI: The Federal Board of Revenue (FBR) have so far received around 1,000 tax returns under the three-month amnesty scheme, announced in April, a senior tax practitioner said on Monday, saying their success hinges on the apex court’s decision.
The Supreme Court was expected to start hearing on a case of the tax amnesty scheme in its Lahore registry on Monday.
Abdul Qadir Memon, president of Pakistan Tax Bar Association said only a small number of returns have been filed as yet as majority of people are awaiting the Supreme Court’s decision of the supreme court.
In April, government announced tax amnesty scheme, which would expire by June-end, to give residents one-off tax benefits for repatriating undeclared local liquid assets with a five percent penalty, undeclared foreign liquid assets with a two percent penalty (if repatriated, or a five percent penalty if remaining abroad or in foreign currencies), and undeclared fixed assets – whether held locally or abroad – with a three percent penalty.
Memon expected a setback for those who have already declared their assets if the court decides against the amnesty.
He said the FBR should issue a clarification that the amnesty was also for the past years. The amnesty should not be for the assets undeclared during the period (July 2017 to April 2018).
Shabihul Ijaz, chief Income Tax Policy of FBR expressed unawareness about the court’s case. He said majority of individuals are eager to avail the amnesty.
Ijaz said the government, through Finance Act, 2018, provided parliamentary approval to amnesty for declaration of foreign and local assets. The scheme is applicable on assets as on April 10, and would be continued till June 30.
He said an individual might avail amnesty for both local and foreign assets. He, however, said those who have surrendered their Pakistani nationality are not able to avail the scheme.
FBR official said the FBR is authorised to issue any clarification on time period and “such power (is) only vested with the political government”. “The FBR is not empowered to even extending the last date for the scheme,” he added.
