Pakistanis legalize Rs1 trillion foreign assets in amnesty scheme: report

Published on: 25/06/2019 | Comments: No comments 

DUBAI: Pakistan nationals have legalized their assets worth Rs1 trillion in foreign jurisdiction including Rs346 billion in the United Arab Emirates (UAE), highest in a foreign country, Khaleej Times said in a report.

The assets whitened by Pakistanis in UAE, accounting for over one-third (34.5 per cent) of the total whitened foreign assets in the Assets Declaration Scheme, the paper said.

Overseas Pakistanis have expressed their trust over the amnesty scheme launched by the PTI government.

Switzerland with its Rs114.8 billion legalized assets was next highest to the UAE, the report said.

While in the UK Rs89.7 billion, Singapore Rs87.3 billion and British Virgin Islands Rs48.9 billion assets were whitened, Director General for international tax at Federal Board of Revenue Dr. Muhammad Ashfaq Ahmed said in an interview with Khaleej Times.

He said most of the foreign assets owned by the Pakistanis is parked here that?s why we chose this place to send the message to Pakistani nationals across the world that they have less than one week to benefit from tax amnesty and declare all their undeclared assets.

?On a bilateral arrangement, the UAE and Pakistan share full details of the property. As far as bank details are concerned, they are shared automatically,? FBR official said.

The purpose of the amnesty scheme, which will end on June 30, 2019, is to allow the non-documented economy?s inclusion in the taxation system to trigger economic revival and growth by encouraging a tax compliance in the economy, Ahmed had earlier said while addressing the community and media personnel in Dubai.

He revealed that some reports indicated a massive informal economy, estimated to be around 80-90 per cent of the formal GDP.

?Hence, the government decided to give a new lease of life to economy and introduced amnesty. All the overseas Pakistanis have to declare their earnings being generated in Pakistan and file tax returns,? he said.

He said it is an era of transparency and developed countries have ended secrecy jurisdictions and developed a framework for sharing information of their residents? assets in those countries.

?Last year, Pakistan received information from 28 countries and UAE was one of them. This year, we are going to receive from 71 countries. In the next two to three years, the number could go beyond 100 countries with whom Pakistan will exchange this information,? he said.? ..? Source

Karachi woman declares Rs 153 billion in tax amnesty scheme

Published on: 18/07/2018 | Comments: 1 comment 

KARACHI: Under the government?s tax amnesty scheme, Maryam Ali from Karachi paid more tax than anyone else until now.

According to the FBR sources, a woman Maryam Ali paid tax of 3.3 billion rupees. Maryam Ali declared the worth of her foreign assets as Rs165 billion rupees

ISLAMABAD: Tax amnesty beneficiaries have declared around Rs1.8 trillion of concealed foreign and local assets by depositing Rs97 billion in taxes to the exchequer since April, finance ministry said on Wednesday.

?Public response to the schemes has been positive,? the ministry said in a statement. ?So far, 55,225 declarations have been filed in which declared value of foreign assets is around Rs577 billion and that of domestic assets is around Rs1,192 billion.?

The finance ministry said the declarants have paid around Rs97 billion out of which around Rs36 billion have been collected on foreign assets and Rs61 billion on domestic assets. ?In addition, $40 million has been repatriated,? it said. ?This response to the amnesty schemes has been unprecedented.?

The last government announced two tax amnesty schemes, namely, Foreign Assets (Declaration and Repatriation) Ordinance, 2018 for undisclosed foreign assets and Voluntary Declaration of Domestic Assets Ordinance, 2018 for undisclosed income and domestic assets.

The original closing date for filing declarations under the amnesty schemes was June 30. It was, however, extended till July 31.

Amnesty scheme for foreign assets applies to both liquid and immovable assets such as bank accounts, shares and mortgaged properties. Tax rates range from two to five percent, depending on the type of asset.

Special tax rate of two percent is applicable to liquid assets which are repatriated into Pakistan. The amnesty scheme for domestic assets covers all types of assets and income, with tax rates of two and five percent.

The finance ministry said the declarant information cannot be used as evidence against him as both the schemes were made part of the Finance Act 2018. Finance minister is monitoring the operation of the amnesty schemes and advising both the Federal Board of Revenue (FBR) and State Bank of Pakistan (SBP) to improve payment procedures and ensure effective facilitation.

FBR has set up help lines, which operate 24/7 with dedicated telephone lines and e-mails for quick response to queries related to the amnesty schemes. The SBP had also devised a procedure, whereby tax in dollar is deposited into SBP?s account through wire transfer for payment of tax on foreign assets.

Government issued US dollar-denominated Amnesty Rules 2018 whereby SBP has been authorised to issue the bonds having a maturity period of five years and annual profit of three percent to be paid semi-annually.

The finance ministry said revenues from the amnesty schemes will help in documentation of the economy as well as bring in onetime payment from non-declarant to officialise their assets. ?Equally critical is to support Pakistan in its endeavour to reduce poverty and uplift its population, which depends on effective prioritisation of development spending.?

.. Source