Undisclosed assets, income: experts underscore need for introducing amnesty scheme before

Tax experts have suggested to the Federal Board of Revenue to announce an amnesty scheme before upcoming budget (2012-13) for the wealthy persons to legalise their undisclosed assets and income at a minimum rate of 1.50 to 2 percent under the powers available as per section 120A of the Income Tax Ordinance 2001.
Experts told Business Recorder here on Wednesday that the FBR is legally authorised to announce amnesty scheme under the provisions of the section 120A of the Income Tax Ordinance 2001. It has been proposed that an Amnesty Scheme may be launched as early as possible to provide window to all those businesspersons to document their undocumented wealth. Such arrangement is permissible in the terms of Section 120A of the Income Tax Ordinance 2001.
At present, businesspersons are documenting their wealth through Foreign Exchange Remittances and paying around 2.5 percent to 3 percent as remittance cost. If such arrangements may be launched during April-May 2012 with specific features, it will indubitably help documenting our economy besides boosting our economic growth. The proposed tax for the legalisation of the un-disclosed assets and income should be 1.50 percent in April 2012; May, 2 percent; June 2012, 3 percent; July 2012, 4 percent; August 2012, 5 percent and September 2012 the rate of tax should be 6 percent.
Tax expert has further proposed that all undocumented wealth disclosed vide this proposed scheme should be given protection under various provisions of Income Tax Ordinance and policy of no questioning should be pursued. Moreover, the important issues of Anti-Money Laundering provisions eg terrorism and/or Drug Money should be dealt accordingly and an affidavit apropos should be taken.
It has been further proposed that the imposition of stipulations like CNIC and NTN (SRO 191) should be made mandatory. The filling of income tax returns should also be made compulsory and proper advertisement of this scheme should be made to attract more people, tax expert added Budget.