The Securities and Exchange Commission of Pakistan (SECP) is penalising those companies, which had filed returns before re-launch of an amnesty scheme namely 'Companies Regularisation Scheme', raising disenchantment among companies. This was stated in a letter sent by the Income Tax Bar Association (ITBA) to SECP Chairman on Saturday.
The letter said the defaulter companies, which filed statuary returns before the re-announcement of the amnesty scheme, are being penalised by the Commission. It said that the scheme was aimed at providing relief to those investor/management companies who have become defaulter for fear of payment of heavy amount of additional filing fee, apart from other penalties, to file their overdue statutory returns without payment of any additional fee.
Despite all efforts by the SECP, a large number of defaulter companies are being charged penalties, raising questions about success of the scheme. It said the scheme would remain operative for a period of 45 days, from May 15 to June 30, and shall apply to the defaults committed up to December 31, 2008. It further said the companies, who have so far not filed the returns, would only take benefit from the scheme and shall be entitled to get their overdue returns and annual accounts accepted on payment of normal filing fee without payment of any additional fee.
The scheme would be applicable to non-listed public companies, private companies, associations not for profit under section 42, trade organisations, companies limited by guarantee under section 43 and foreign companies. ITBA has requested the SECP to consider elimination of fine/penal proceedings against those defaulter companies which have already filed the returns, to create level playing field for them.