THURSDAY NOVEMBER 29: Amnesty schemes may be applicable for 75 days: bill likely to be tabled next week

ISLAMABAD: The Finance (Amendment) Bill 2012 is expected to be tabled in the upcoming session of National Assembly to be held from next week to implement the Tax Registration Enforcement Initiative, 2012 (TREI 2012) and Investment Tax Scheme, 2012 for a period of 75 days starting December 15, 2012.
Sources told Business Recorder here on Wednesday that the schemes are likely to be applicable for a period of 75 days. If the schemes star from December 15, 2012, the same would continue till February 28, 2013. Tax Registration Enforcement Initiative, 2012, has been devised to attempt, through a simple scheme to be administered through Banks along with Nadra under proposed section 120B of Income Tax Ordinance 2001, to register and bring into tax net non-filers of tax returns. A fixed tax is proposed and provides cover to undeclared income/assets up to Rs 5 million.
Investment Tax Scheme, 2012 is being proposed to be enacted under authority given in section 120A of Income Tax Ordinance 2001, which will attempt, through a simple scheme, to provide a mechanism and cover to registered filers in addition to non-filers of income tax returns to declare undeclared income assets/expenditure up to the value of Rs 5 million by payment of token tax and additional assets/income by payment of Investments tax as per proposed slab. The scheme will be administered through establishing special counters with the help of banks along with Nadra.
As a policy decision, FBR is providing this last concessionary voluntary tax compliance opportunity and is reposing a lot of trust in the persons who are regularly filing their returns of income and also providing opportunity to un-registered non-filers, registered non-filers to regularise and come clean in their income tax affairs by making a true and correct declaration of their un-declared income and assets and expenditures, sources said.
Under the TREI 2012, any tax deducted under the tax withholding regime under Income tax Ordinance 2001 shall not be adjustable against tax liability payable. The individuals or AOPs paying registration tax shall not be asked to explain the source of undisclosed income/assets/expenditure with a declared value up to Rs 5 million. Provided that they will have to file a declaration of undisclosed income/assets/expenditure at the time of payment of Registration Tax.
An Individuals, or AOP who desires to declare undisclosed income/assets/expenditure with a declared value exceeding Rs 5 million, shall pay Investment Tax at the rates prescribed in Investment Tax Scheme, 2012 and file separate declaration under Investment Tax Scheme, 2012. In case a person desires not to avail the concession option, he may file a normal return of income as per provisions of Income Tax Ordinance 2001, they added.