FAISALABAD: The Stashing undeclared assets in foreign countries by Pakistanis would not be possible under Multilateral Convention and Anti Money Laundering laws, hence, voluntarily Tax Amnesty Scheme (TAS) is most suitable appropriate and in time for the immediate repatriation of local as well as foreign assets, said Tariq Mehmood Pasha Chairman Federal Board of Revenue (FBR).
Addressing the business community in Faisalabad Chamber of Commerce and Industry, he said that the businessmen who had kept their assets abroad or invested it in real estate sector should legalize it through voluntarily TAS. He told that Multilateral Convention will become effective from first September this year and under this convention more than 102 countries including Pakistan would be bound to exchange information regarding assets of foreigners in their respective countries.
He said that this scheme will provide an opportunity to the businessmen to legalize their undeclared assets kept abroad due to different reasons. However; this scheme would not provide any cover to the investment raised through corruption or criminal activities. He said that in case Pakistanis prefer to keep their investment in other countries, they would have to pay full tax on it while criminal proceedings could also be initiated against them in that country.
He told that Dubai has already provided complete list of Pakistanis who have invested in the real estate sector of that country. He said that if the owners of these properties fail to legalize their investment, then they have to face the music. He said that they should not consider 2 to 5% as tax or fine on their foreign assets or investment as it will provide them life time satisfaction to have enough white money to further expand their businesses. Regarding domestic portion of this scheme, he said that most of the capital has been stashed in real estate sector. He told that FBR has so far completed 85% data mapping of real estate sector. He warned that elements who failed to avail this last opportunity to legalize their assets would be interrogated and legal action could also be initiated against them.
Regarding Benami Accounts, Chairman FBR said that investment made in the name of relatives could also be declared under this scheme provided their relatives have no objection on it. He further clarified that all information provided under voluntarily TAS would be kept secret and would not be provided to any department for any purpose.
Responding to a question about businessmen holding offices of various public sectors entities, he said that a clarification has been made in Finance Bill that they could also avail from this scheme as they are not real beneficiary of this office.
Chairman FBR Tariq Mehmood Pasha told that an extensive publicity campaign has already been launched to introduce this scheme while he himself is visiting various cities to explain its salient features in addition to dispelling apprehensions of business community regarding TAS. Similarly, the details of this scheme have also been provided to foreign office and Pakistani embassies abroad so that they could contact and inform Pakistani about the benefits of this scheme.
Responding to a question, he said that the ultimate objective of this scheme is to drag out Pakistan from the economic crisis and strengthen our foreign exchange reserves. In this connection. the steps are being taken to make payment of these taxes through repatriation of dollars from other countries. They could not be allowed to purchase dollars from the local markets to make payment of this tax as it will further add burden on the already depleting foreign exchange reserves. He told that State Bank of Pakistan has also issued dollars bonds which could be en-cashed after a period of one year with 3% profit.
Regarding repeated audits of existing tax payers under 2014-D he told that this SRO will become in fructuous after 30th June and from next year only one audits will be allowed during a period of 3 years. It will resolve the problem of local tax payers as the number of audit cases will start declining immediately and the situation further liquidate in the coming years he added.
Commenting on the problems other than TAS, he requested representatives of different sectors to visit him for detailed discussion as their specific issues. Regarding budget related matters, he said that they should start their homework right now instead of deferring these on May, June next year. He said that they should come up with positive and practicable suggestions so that FBR could discuss it and finalizes its proposals ahead of the next year budget.
Earlier in his address of welcome, Mian Adress Former President FPCCI and FCCI told that being president of FPCCI, he had floated the idea of TAS few years ago, but it could not be materialized due to unnecessary delay and hence. the economy has to face a major setback. Similarly, Pak Rupee has to face depreciation for third time during last 4 months. Still there is difference of three rupees in the value of rupee in its official rate and in the open market”, he said and added that this situation was pushing Pakistan to get financial support from the IMF. He said that it would be better to raise funds from our own resources instead of getting 5 billion dollars from the IMF which may further trigger inflation in the country.
Mian Address was optimistic that we could generate 10 billion dollars instead of 5 billion provided government repose confidence and facilitate the businessmen. He further clarified that business community is patriotic but they were forced to shift their assets abroad due to poor law and order situation, terrorism and weaknesses of our taxation system. He said that TAS is not a new experience. Various third world countries in addition to many developed countries had introduced such schemes to stabilize their economy. he said and demanded extension of one month in TAS. He stressed the need to handle this scheme purely on commercial basis by dolling out additional facilities to the early birds.
Mian Muhammad Address further said that taxation system has inherent discrepancies and we have to take out-of box solutions to rectify these. He said that FBR should convince people to voluntarily pay their taxes instead of harassing them. He said that each and every Pakistani should pay its due share of taxes so that we could achieve economic sovereignty in its true spirit.
A question answer session was also held in which Hamid Masood Engineer Ehtasham Javaid, Rana Sikandar e Azam, Talat Mehmood, Shahid Ahmed Sheikh, Farooq Allah Wallah Muhammad Usman , Muhammad Farhan, Khalid Bhatti , Bashir Baig, Amjad Ali Amjad and Ehsan Ullah Niazi raised interesting questions.
Later Mian Muhammad Adrees along with Acting President Usman Rauf presented FCCI shield to Chairman FBR Mr.Tariq Mehmood Pasha. Later Mian Usman Rauf also offered vote of thanks.
