The federal government is expected to promulgate a Presidential Ordinance to empower the Federal Board of Revenue to launch the "Tax Registration and Investment Scheme-2012" from October 2012 - under which undisclosed assets would be legalised on payment of less than one percent tax. Sources told Business Recorder here on Friday that the FBR will offer three slabs of taxes for the unregistered persons under the proposed amnesty scheme.
The three slabs of fixed tax have been set on the basis of time period for which the scheme is being availed, ie, October to December 2012. Three different tax slabs have been proposed for three months, ie, October, November and December 2012. In the first phase, the FBR will allow un-registered persons to pay fixed rate of nearly Rs 39,000 as tax in October 2012. On payment of fixed amount of tax, the past tax liability would be cleared and no question would be asked for non-payment of tax during the last five years.
Under the second slab, the un-registered persons who would miss the opportunity to avail scheme in October 2012 would be allowed to pay around Rs 49,000 as fixed tax in November 2012 for registration with the tax department. In the third phase, a fixed amount of tax of nearly Rs 59,000 would be offered by the FBR for availing the scheme in December 2012.
Thus, the scheme has been based on the principal of come early and pay less for availing the amnesty scheme. A difference of Rs 10,000 has been maintained for the un-registered persons on monthly basis for availing the amnesty scheme. Whatever be the finalised rate of the fixed amount of tax, it would be gradually increased from October to December 2012 with a difference of Rs 10,000 on monthly basis.
On payment of one-time fixed amount tax during October-December 2012, the tax liabilities of the past five years would end under the proposed amnesty scheme, sources said. Sources said that the FBR has proposed tax less than one percent for the legalisation of assets made from un-disclosed income and investment under the proposed amnesty scheme. The un-registered persons availing the proposed amnesty scheme would also be provided an opportunity to legalise their assets under a separate arrangement.
If an un-registered person, who has paid approximately Rs 39,000 in October 2012 for availing the amnesty wanted to legalise his asset, he has to separately pay less than one percent as tax for legalisation of asset. Similarly, a person, who has availed scheme by paying fixed amount of tax Rs 49,000 in November 2012, would pay a nominal amount as tax for documentation of his movable and immovable assets.
Sources said that Presidential Ordinance is required to be provided legal backing for offering such kind of amnesty scheme where un-registered persons would be allowed registration with the tax department under a special arrangement of fixed payment of taxes. The registration of the un-documented persons under a very simplified procedure needs legal backing.
It would be a different kind of scheme where the un-registered person can obtain the National Tax Number (NTN) by paying a fixed amount of tax and no question would be asked for the last five years. This special arrangement to facilitate the new taxpayers would require legal backing under the Presidential Ordinance.
The scheme is entirely different from the normal procedure of registration and it has been linked with payment of fixed amount of tax. A special benefit would be announced for the un-registered persons. In such a situation, promulgation of the Presidential Ordinance would be the most appropriate way to give legal backing to the FBR for launching of the amnesty scheme.
Sources said that the scheme is being finalised by the FBR which would be formally approved by the Ministry of Finance. After completion of all legal formalities, a Presidential Ordinance would be issued to announce "Tax Registration and Investment Scheme-2012."
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