Lahore High Court (LHC) has disposed of various petitions wherein FBR's Circular No 07 of 2018 was challenged with the prayer that a taxpayer who had paid tax under amnesty scheme may be allowed to file declaration under the Voluntary Declaration of Domestic Assets Act, 2018 and incorporate the assets in his books of accounts.
It is reliably learnt that LHC has issued a written order and instead of declaring FBR's Circular 07 of 2018 as illegal or allowing taxpayer to file declaration under the Voluntary Declaration of Domestic Assets Act, 2018 and incorporate the assets in his books of accounts, directed the FBR that amounts deposited for declaration of assets under the Act of 2018 shall be refunded without any condition within 15 days from the date of application for refund. Consequently, FBR's stance vide Circular 07 of 2018 has been affirmed by the LHC.
When contacted, tax lawyer Waheed Shahzad Butt who has challenged present the Assets Declaration Ordinance, 2019 before the LHC, told Business Recorder that for all practical purposes any tax amnesty means another financial National Reconciliation Ordinance (NRO). The government instead of entertaining any such scheme should seriously consider introducing 'asset-seizure scheme' to confiscate undeclared/ untaxed assets / wealth created from black/ undisclosed / untaxed money and make laws to bring back looted money. In case of recent order passed by LHC, it is stated by tax lawyer that schemes allowing something out of books should be interpreted strictly in favour of State instead of giving any benefit of doubts to the tax evaders.
The LHC order states: "Petitioners, in this and connected petitions, are aggrieved of Circular No. 07 of 2018 dated 24.10.2018 whereby acceptance of assets declaration has been denied for the reason that declaration was made after the cutoff date given in Voluntary Declaration of Domestic Assets Act, 2018."
The LHC order added, "On last date, it was offered by learned counsel for the petitioner that they will not press these petitions if the deposited amount is adjusted for assets declaration in current Assets Declaration Scheme for 2019. Today it is apprised that under the Assets Declaration Scheme for 2019, a mechanism of adjustment is not available, therefore, request made cannot be accepted; however, it is offered on behalf of FBR/concerned Commissioners that deposited amounts shall be refunded within fifteen days from the date of filing of application for refund. Under the circumstance, this and connected petitions are disposed of upon an undertaking on behalf of FBR that the amounts deposited for declaration of assets under the Act of 2018 shall be refunded without any condition within fifteen days from the date of application for refund. Petitioners are directed to move application for refund".
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