Declaration of expenses: new income tax return form to encourage rich people

Rich class and potential businessmen would be encouraged to declare their actual expenditure, including personal, household, fuel of motor vehicles, repair/maintenance of vehicle/house, and money to be paid to personal driver/servants in the new income tax return for the Tax Year 2010.
Sources told Business Recorder here on Friday that the real income of the rich people would be accounted through the details of the personal expenditure to be submitted on new returns for the Tax Year 2010. The elite segment of the society would have to declare their all basic expenditures in the new return. However, taxpayers would not be required to pay an extra tax on such declared expenditures and cost of assets purchased/sold in the new income tax returns. These are mainly declarations to know about the expenditures made by the rich class of the society.
The details of personal expenditure of the business individuals would particularly help the tax department to broaden the tax base. The 'Annex D' of the return would be used as a major tool for documentation of the economy, which would allow the taxpayers to submit details of personal expenditures. This would not increase the tax burden on the taxpayers, but would improve documentation for broadening the tax base.
According to sources, it is expected that incorporation of a new 'Annex D' (details of personal expenditure) would help in determining a person's actual expenditure. They would have to provide information about electricity/gas consumption, telephone/mobile/ internet bill, house rent, education of children/ spouse/self, local/foreign travelling and membership of clubs. They would also be required to declare other personal and household expenses, including fuel of motor vehicles, repair/maintenance of vehicle/house, personal driver/servants, etc.
Sources said that service providers, including doctors, medical practitioners, engineers, chartered accountants and other potential categories of service providers would also disclose their personal expenditure. In other cases, owners of property, having rental income, would also be encouraged to voluntarily declare the details of their personal expenditures. All those falling within the category of 'individuals' would be required to disclose the details of personal expenditures under the 'Annex-D' of the proposed return form for Tax Year 2010.