Panel constituted by SC proposes amends to Income Tax laws
ISLAMABAD: A three-member committee, constituted by the Supreme Court of Pakistan, has proposed amendments to laws of Income Tax Ordinance (ITO), 2001 and Protection of Economic Reform Act, 1992, for removing legal lacunas as they consider it as pre-requisites for introducing yet another amnesty scheme to bring offshore assets into the tax net.
“This committee has also proposed that there should be no limit or bar of five years for opening up of cases against those who possessed offshore assets abroad, so they propose doing away with this clause of Income Tax Ordinance, 2001, in their submitted report before the apex court of the country,” official sources confirmed while talking to The News here on Friday.
Without amending some relevant laws, especially to Income Tax Ordinance and PERA, the long arm of law will remain effective, so it will be pre-requisite for any amnesty that it possesses both carrot and stick. “There will be no stick in hands of government if there will be no amendments in certain laws,” added the sources.
For remittances coming into Pakistan from abroad, the State Bank of Pakistan (SBP) and Federal Board of Revenue (FBR) have first time agreed, in principle, that no question will be asked on limit of $100,000 on per annum. “If someone receives more money from abroad than envisaged limits then he/she will have to file return in order to justify sources of received money,” added the sources.
A three member committee, comprising Finance Secretary Arif Ahmed Khan, State Bank of Pakistan Governor Tariq Bajwa and FBR Chairman Tariq Pasha, was constituted by the apex court with the mandate to propose ways and means to bring offshore assets under the tax net.
The committee also sought assistance from the National Accountability Bureau (NAB) and Federal Investigation Agency (FIA) for preparation of its report in line with the directives of the apex court of the country.
The committee also proposed separate form for foreign assets declaration scheme binding all those who will benefit from this scheme to mention all assets they possessed in shape of foreign accounts, property, houses or others to declare each and minute details. Some income tax return filers showed these assets in their wealth statements, but there was need to make an effort for making taxation system crystal and clear so that no one could mould tax laws in order to protect its skin.
This report, according to the sources, has already been submitted into the Supreme Court. The country’s tax authorities are happy with this development arguing that this development will help them restoring confidence that if any amnesty scheme was launched under Foreign Asset Declaration Scheme, it will have backings of all state institutions including judiciary.
