LAHORE: The Federal Board of Revenue (FBR) had issued details of the amnesty scheme for industrial sector and encouraged entrepreneurs to invest in industrial undertaking out of their undisclosed assets.
The details were issued in an income tax circular 13 of 2022. The amnesty package is laden with incentives for three areas including industrial promotion, revival of sick units and foreign investment in industrial sector.
As per details, the incentives are provided in the form of adjustment of business losses by acquiring the company. A new section 59C has been inserted in the Ordinance under which an acquiring company is allowed to adjust loss for the latest tax year and brought forward assessed business losses, excluding capital loss, of acquired company flick industrial unit’) by way of acquisition of its majority share capital.
The acquiring company can adjust said losses for a period of three tax years up to tax year 2026. Failure to revive sick industrial unit by tax year 2026 will entail acquiring company to reverse the adjustment of loses in the preceding three tax years and offer income for tax which was set-off due to adjustment of loses of the acquiring company in tax year 2027.
