Amnesty Scheme 2019

UNDISCLOSED ASSETS, SALES OR EXPENDITURE

RATE OF TAX

All assets, except domestic immovable properties 4%
Domestic immovable properties 1.5%
Foreign Liquid Assets not repatriated 6%
Unexplained Expenditure 4%
Undisclosed Sales 2%

 

TIME OF PAYMENT OF TAX

RATE OF DEFAULT  SURCHARGE

If tax is paid after 30th June,2019 and on or before 30th September ,2019 10% of tax amount
If the tax is paid after the 30th September, 2019 and on or before the 31st December, 2019 20% of tax amount
If the tax is paid after the 31st September, 2019 and on or before the 31st March, 2020 30% of tax amount
If the tax is paid after the 31st March, 2020 and on or before the 30th June, 2020 40% of tax amount

 

Amnesty Scheme Brief Points:

Value of Assets in case of domestic immovable properties shall be the price not less than

  1. 150% of the FBR value OR
  2. 150% of the DC value where FBR value has not been notified or the FBR value is less than the DC value OR
  3. 150% of the FBR value notified under subsection (4) of section 68 of the Income Tax Ordinance 2001 (XLIX of 2001) for land and 150% of DC value for constructed property, where FBR value has not been notified for constructed properly.

 

Where any cash in hand has been declared , the same shall be deposited before the filing of declaration and is retained in such bank account upto 30th June ,2019.

 

Amnesty Scheme Shall not apply to:

a. holders of public office     

b. a public company

c. assets derived from criminal offence

d. gold and precious stones

e. bearer prize bonds

f. financial instruments OR

g. proceeding spending in the court of law

 

The State bank of Pakistan has prescribed the mode and manner of repatriation of assets held outside Pakistan and payment of tax thereon.

No allowance, creditor deduction under any law for the time being in force shall be available for assets so incorporated

Where a declarant has made declaration under section 6, he shall be entitled to incorporate such assets, income or sales in his ITR, wealth statement and books of accounts

Any person shall been titled to incorporate assets in the books acquired which have been barred by the time of limitation under the Income Tax Ordinance, 2001.

The due date for payment of tax chargeable under this Ordinance shall be on or before 30th June, 2019.

 

FAQs / OTHER IMPORTANT MATTERS ADDRESSED BY THE ORDINANCE:

What is the status of previous declarations filed?
In case a person has already filed a declaration in respect of any immovable property in line with Section 68 of the Income
Tax Ordinance, 2001, or the Voluntary Declaration of Domestic Assets Act, 2018 no further proceedings will be initiated
against him in view of the provisions of this Ordinance.

How can I enhance the value of immovable property previously declared?
Any declarant who wishes to enhance the value of immovable property previously declared under section 68 of the
Income Tax Ordinance, 2001, or the Voluntary Declaration of Domestic Assets Act, 2018 may do so by filing a further
declaration in terms of the enhanced value calculated under this Ordinance.

Should I account for the undisclosed assets, sales and expenditures declared under this Ordinance?
Yes! A declarant is entitled to reflect any undisclosed assets, sales and expenditures which are declared under this
Ordinance in his return, wealth statement or financial statements irrespective of the fact that they relate to a year which is
barred by time for the purpose of revision of return of income or wealth statement.

What is the mode and manner of repatriation of assets held outside Pakistan and payment of tax thereon?
The mode and manner of repatriation of assets held outside Pakistan and payment of tax thereon shall be notified by the
State Bank of Pakistan in the near future as per the Ordinance.

Can I avail the benefits of this Ordinance where proceedings have been initiated and/or pending in relation to
the matter of my undisclosed assets, sales and expenditures under the Income Tax Ordinance, 2001; the Sales
Tax Act, 1990 and the Federal Excise Act, 2005?
Yes! the benefits of this Ordinance will be available where any proceedings have been initiated and/or pending in relation
to the matter of undisclosed assets, sales and expenditures under the Income Tax Ordinance, 2001; the Sales Tax Act,
1990 and the Federal Excise Act, 2005. However, proceedings pending in the court of law have specifically been excluded!

Can the Declaration under this Ordinance be used as admissible evidence against me under any proceedings?
No! Nothing contained in any declaration made under the Ordinance shall be admissible evidence against the declarant for
the purpose of any proceedings relating to imposition of penalty or adverse action or for the purposes of prosecution
under any law.

Can I settle my outstanding demand raised under the Income Tax Ordinance, 2001; the Sales Tax Act, 1990 and
the Federal Excise Act, 2005 while filing my declaration?
This Ordinance also provides the facility for any person at the time of filing of declaration to settle any demand raised
under the aforementioned statutes without any inference of default surcharge and penalty

 

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Karachi, Pakistan

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