Around 55,225 declare Rs1769b foreign, domestic assets under amnesty scheme
This response to the amnesty schemes has been unprecedented as 55,225 declarations have been filed so far with a declared value of foreign assets around Rs577 billion and that of domestic assets around Rs1192 billion.
The declarants have paid around Rs97 billion taxes including Rs36 billion on foreign assets and Rs61 billion on domestic assets, Finance Ministry said, adding that in addition, $40 million has been repatriated.
The original closing date for filing declarations under the amnesty scheme was June 30th, 2018, which had been extended till July 31st, 2018 on account of representations from trade bodies, professional associations and general public due to short operational period after clearing legal and procedural challenges and problems faced by declarants in the payment of tax on foreign assets and repatriation of liquid assets.
The Finance Minister has been closely monitoring the operation of the amnesty schemes and constantly advising both the Federal Board of Revenue (FBR) and State Bank of Pakistan (SBP) for improving payment procedures and ensuring effective facilitation.
FBR had set up helplines, which operate 24/7 with dedicated telephone lines and e-mails for quick response to queries, they ministry said adding that FAQs, online user guide and all relevant documents have been published on FBR’s website www.fbr.gov.pk) which are periodically updated on the basis of queries raised by intermediaries and declarants.
Frequent interaction with the private sector including accounting professionals and tax practitioner bodies have been helpful. Similar arrangements have been put in place in SBP.
Amnesty scheme for foreign assets applies to both liquid and immovable assets such as bank accounts, shares and mortgaged properties. Tax rates range from 2% to 5%, depending on the type of asset. Special tax rate of 2% is applicable to liquid assets which are repatriated into Pakistan.
The amnesty scheme for domestic assets covers all types of assets and income, with tax rates of 2% and 5%.
To protect declarants from any harassment, both schemes under Voluntary Declaration of Domestic Assets Act, 2018 and Foreign Assets (Declaration and Repatriation) Act, 2018 promulgated on 8th April 2018 which eventually was made part of Finance Act 2018 to ensure complete confidentiality of declarant’s information.
Moreover, such information cannot be used as evidence against declarants under any other law. APP