ISLAMABAD: An effective mechanism devised by the Federal Board of Revenue (FBR) over the years has converted the tax amnesty scheme into a great success story.
Amnesty schemes introduced by the government in different times in the past could not bear such fruits as compared to the current scheme.
Till Saturday morning, FBR had collected over Rs 80 billion tax in result of declaration of assets by both the domestic and overseas Pakistanis who tended to whiten their undeclared assets by benefiting from the tax amnesty scheme.
A source at FBR told Customs Today that on the last day of the scheme that only the effective mechanism devised by the tax authority to unearth the undeclared assets and investments as well as having access to the hidden properties had forced people to benefit from the scheme just to whiten their black money or non-declared assets both inside and outside the country.
In the beginning of 2015, Customs Today reported that FBR was devising a mechanism which would not let anyone to hide their assets and ultimately people would have not left with any other option except joining the tax net.
In this regard, FBR collaborated with State Bank of Pakistan (SBP) to get directive to all the scheduled banks to share information about financial transactions of the people with concerned departments of the FBR. At first, the private banks showed some resistance but ultimately they had to comply with the orders of the SBP and FBR.
The source said that Directorate General Intelligence & Investigation (I&I) had been following multi- pronged strategy to dig out tax evasion by the tax evaders in the country. In result of this strategy and effective inquiry of an Additional Commissioner Directorate General I&I Islamabad, a person from Karachi deposited Rs3 billion as tax to whiten the undeclared assets. Actually, the source said that the said person had realized that in result of inquiry he could be nabbed at any time therefore he preferred bowing to the FBR rather than being detected and prosecuted.
Moreover, the source said that in result of intelligence and investigative efforts of Directorate of I&I Islamabad, data of 6,000 non-filer investors in real estate sector in Islamabad alone had been reduced and majority of them were trying to whiten their assets prior to criminal investigation of their land and financial transactions. I&I started a vigorous investigative process some six months back tantamount to the fact that majority of these investors were contacting FBR even with filled challan forms about whitened their assets.
Secondly, the source said that international exchange of information would become effective in Pakistan from September and then Pakistan and the world would share information about the investors; then the tax evaders would not be in a position to keep their undeclared assets as hidden.
“The tax amnesty scheme was announced in April 11 but up to June 11, people showed the least possible interest fearing that the Supreme Court would strike down the scheme, but people started depositing their revenue after June 11 after SC ruling,” the source maintained.
In this regard, the government issued an ordinance to extend the scheme for 15 days, the source said, adding that if scheme would be extended, FBR would get another Rs 100 billion as revenue collection in the form of tax paid by the people benefiting from this scheme by declaring their undeclared assets.
