Federal Board of Revenue (FBR) is planning to kick off massive crackdown against the owners of undeclared moveable and immoveable assets except the beneficiaries of amnesty scheme to be ended by June 30, 2019. Tax experts said that the amnesty scheme announced by the incumbent government was the most comprehensive scheme as compared to the previous ones.
They said that the government has directed the tax authorities to ensure not to take any action against the beneficiaries of the schemes in order to regain confidence for the FBR. Moreover, they said that the scheme gained momentum after the PM address to the nation and they are now receiving dozens of queries on daily basis.
Sources in FBR said that they were also instructed by the government to gather and compile all records of non-filers related to their bank accounts, industrial & commercial power connections, houses of two kanals & above, luxury vehicles of 2400cc and above and foreign travels to kick off massive crackdown after the end of amnesty scheme against those persons, who could not avail the scheme.
Keeping the said direction in view, the FBR has communicated these instructions to its field formation across the country, which is now gathering and compiling all records of non-filers on the basis of these identified areas.
The field formation is presently making all preparation to initiate crackdown against non-filers, who remain unable to avail the amnesty scheme to be ended by June 30, 2019, sources said.
Furthermore, they said that the government through amnesty scheme provided an opportunity to the owners of undeclared moveable and immoveable assets to disclose these benami assets on or before June 30, 2019 to avoid confiscation and imprisonment up to seven years.
Needless to mention, the government has announced amnesty scheme to whiten undeclared assets by June 30, 2019 under Assets Declaration Ordinance 2019.
The rates of tax imposed on undisclosed assets, sales and expenditures under the scheme are 4 percent on all assets except domestic immovable properties, 1.5 percent on domestic immovable properties, 6 percent on foreign liquid assets not repatriated, 4 percent on unexplained expenditure and 2 percent on undisclosed sales.
Similarly, the amount of tax under clause (1) of the schedule has been increased by a default surcharge by amount percentage. If the tax is paid after the 30th June, 2019 and on or before the 30th September, 2019, it will be 10% of the tax amount.
If the tax is paid after the 30th September, 2019 and on or before the 31st December, 2019, it will be 20% of the tax amount. If the tax is paid after the 31st December, 2019 and on or before the 31st March, 2020, it will be 30% of the tax amount. If the tax is paid after the 31st March, 2020 and on or before the 30th June, 2020, it will be 40% of the tax amount.