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An alert for asset declaration before the end to amnesty scheme

An alert for asset declaration before the end to amnesty scheme

An alert for asset declaration before the end to amnesty scheme, Declared by Federal Board of Revenue

The federal board of Revenue has demanded a declaration of assets through the asset declaration scheme. The scheme is in the form of amnesty, which means that the past offences of not paying taxes on the owned but undeclared properties or asset will be ignored. The ignorance is only granted for the past offences but once the asset is declared, the owner has to pay full tax for the current and upcoming years. The amnesty is granted in a way that a very reduced percentage of tax is subjected to be paid to the government without any additional fines or surcharges or penalties such as imprisonment.

It has been disclosed by the Government of Pakistan that the federal board of revenue is fully aware of every misconduct that is going on. They have updated records of the property holders and in case someone is still not ready to gain benefit from the amnesty scheme of asset declaration will face trial and charges.

The time limit has been issued and now it's an alert moment for those who are ready to declare their assets by using the benefit of asset declaration. Prime Minister of Pakistan has assured that the tax obtained from this scheme will be used to pay off heavy debt. He referred this debt as Quick Sand for Pakistan and the tax collected will help Pakistan to pull itself out from the depths of poverty.

The last date for asset declaration through asset declaration scheme is 30th June 2019. In case any person failed to declare their assets on the given date will be subjected to a default surcharge for which the person will be liable otherwise strict action will be taken by the Federal Board of Revenue. According to the Federal Board of Revenue whoever is facing consequences due to the non-declaration of assets  have to face full penalty with the payment of taxes at a full rate without any amnesty. As well as the person will be charged to the  imprisonment of seven years or more under the Benami Transaction (Prohibition) Act, 2017 and up to five years of imprisonment under the act of Income-tax ordinance 2001.

Tax is subjected to the fair market value of the asset and in case of any revision, the value of the asset cannot be decreased. In case the value is decreased the owner is subjected to pay tax on the previous amount that was relatively higher than the current amount.

Benefits for the person who is declaring assets before 30th June under Amnesty Scheme:

  1. Ignorance on the past offences of not declaring assets, expenditure, and sales to the government.
  2. Ignorance on the past offence for not paying taxes to the government and a minimum tax rate will be applied to the declared value of assets.
  3. The subjected person will be safe from humiliation and penalties
  4. If a person is a non-resident of the state of Pakistan, he or she can still take advantage of the amnesty scheme and declare their assets.
  5. A person can declare their foreign assets and business under this scheme as well.

NADRA has shared all of the details of every citizen to the federal board of revenue and database is available to be accessed by the citizen to check where they need to declare their assets or not. This is subjected to a fee of 500 Rs and any citizen can check up on their records from NADRA. The last date for the declaration of assets, expenditure, and transactions through the amnesty scheme is June 30th, 2019. No extensions are planned to be granted until now and whoever will delay will face charges and penalties. The declaration will be done according to the act of Income-tax ordinance 2001 and Benami Transaction (Prohibition) Act, 2017. The declaration of assets can include the justification of sources of finance as well.