ISLAMABAD: Federal Board of Revenue (FBR) has initiated the process of framing cases under concealment of assets against persons who declared under an amnesty scheme but failed to pay taxes within the given timeline.
The FBR distributed a number of cases with tax offices having jurisdiction over the cases of those persons, who declared their assets under Assets Declaration Ordinance, 2019, but failed to pay the taxes by deadline i.e. June 30, 2020.
In this regard the Regional Tax Office (RTO) Karachi issued 558 notices to such persons for recovery of over Rs610 million payable by the declarants.
Officials at the RTO Karachi on Saturday said that in case declarants failed to pay the amount the FBR would invoke Section 111 of the Income Tax Ordinance, 2001, which related to concealment of income and assets.
The government in May 2019 announced Assets Declaration Scheme which covered undisclosed assets, undisclosed expenditure, undisclosed sales and benami assets.
The declarants under this amnesty scheme were allowed to pay tax amounts in installments with default surcharges. The scheme of payment with default surcharges was: the default surcharge was 10 percent in case due amount was paid by September 30, 2019; default surcharge was 20 percent in case the outstanding paid by December 31, 2019; the default surcharge was 30 percent in case the due amount paid by March 31, 2020; and the default surcharge was 40 percent in case tax amount was paid by June 30, 2020.
The default in payment rendered such declarations as invalid under the rules defined for the amnesty scheme, the officials said and added that show cause notices had been sent to the such declarant before launching action under concealment of assets.
Tax rates offered under the amnesty scheme was very nominal yet the declarants had failed to pay the outstanding amount.
The amnesty scheme had offered to declare all assets except domestic immovable properties at four percent. A tax rate of 1.5 percent was offered to declare undisclosed domestic immovable properties.
Meanwhile, undisclosed foreign liquid assets not repatriated were offered to declare at 6 percent. The amnesty scheme offered to declare unexplained expenditure at 4 percent and at two percent for undisclosed sales.
The amnesty scheme had provided comprehensive immunity from other laws except for those money derived from proceeds of crime or terror financing. Further, public office holders were not allowed to avail the scheme.
