Federal Board of Revenue (FBR) on Monday notified draft rules to implement tax amnesty scheme 2019. The FBR invited comments or objections on the rules by May 22, 2019.
According to the draft rules, the FBR notified following conditions for making declaration for foreign and domestic declaration:
(1) For the purpose of incorporation of undisclosed assets and undisclosed expenditure declared under the Ordinance (asset declaration):
(a) where income tax return for tax year 2018 has not been filed, the declarant shall, along with the declaration or such date as extended by the board [FBR], file
(i) income tax return for the tax year 2018; and
(ii) wealth statement or financial statement, as the case may be as on June 30, 2018.
(b) Where income return for tax year 2018 has been filed under the provisions of the Income Tax Ordinance, 2001, the declarant shall, along with the declaration or such date as extended by the board, revise –
(i) income tax return and financial statement filed for tax year 2018, if declarant is a company; or
(ii) wealth statement, if the declarant is an individual or an association of persons.
(2) Where as person declares undisclosed sales in terms of Section 3, he shall declare the undisclosed sales subject to the Sales Tax Act, 1990 and the Federal Excise Act, 2005 from July 2014 to June 2018, in the first sales tax and federal excise return, due after the declaration.
(3) For the purpose of section 3 and 4 of the ordinance, in case of payment of tax of foreign assets –
(a) the value of such assets shall be declared in respective foreign currency on Board’s website portal;
(b) tax shall be paid in foreign currency as per procedure specified by the State Bank of Pakistan at the rate specified under the Ordinance; and
(c) in case of tax payment after June 30, 2019 liability of tax and default surcharge shall be paid in foreign currency as per procedure specified by the SBP and will be calculated in Pak Rupee at an exchange rate prevailing on the date of payment.
(4) For the purpose of clause (d) of Section 8 of the Ordinance, in case of foreign assets not being repatriated into Pakistan, if such assets represent cash or any other bearer assets, the same or its proceeds shall be deposited and retained in a foreign bank account of the declarant till June 30, 2019 and bank statement as evidence thereof, shall be provided by July 30, 2019 or such date as extended by the Board.
(5) Payment of tax for original demand:
For the purpose of sub-section (4) of Section 6 of the Ordinance, default surcharge and penalty shall not apply if, –
(a) tax determined by an officer of Inland Revenue in the original order, is paid up to June 30, 2019;
(b) such original order or an appellate order passed against such original order has not yet attained finality.
Explanation: An original order passed by and officer of Inland Revenue or an appellate order passed by an appellate authority shall be taken to be final if no right of appeal has been provided against such orders or no appeal has been filed within the time limit prescribed under the applicable laws against such orders.
(6) Payment of tax under other laws:
For the purpose of Section 4, 12 and 16 of the Ordinance, where the declarant has paid tax under the Ordinance, no tax shall be payable by the declarant under the Income Tax Ordinance, 2001, the Sales Tax Act, 1990 and Federal Excise Act, 2005 in respect of such undisclosed assets, undisclosed expenditure or undisclosed sales.
(7) Revision of declaration:
Any person who having filed a declaration hereinafter referred to as the ‘original declaration’ discovers any omission, mistakes, computational error or wrong statement therein may file revised declaration within the due date specified in Section 3 of the Ordinance subject to the condition that the value of assets and the tax paid thereon shall not be decreased.