Tax Amnesty Scheme for Off shore companies in offing
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ISLAMABAD: A new Tax amnesty scheme is in offing by the federal government to pave the way for the off shore companies owners to bring back their money to Pakistan.
Tax authorities on Wednesday informed the National Assembly Standing Committee on Finance that they were considering proposals to introduce Amnesty Scheme for owners of offshore companies and properties abroad by paying tax at different rates.
Another proposal under consideration is withdrawing exemption for ascertaining source of income on money coming into the country through remittances in the upcoming budget 2017-18.
But the Chairman FBR Dr Mohammad Irshad said that it would be major policy decision so he would not comment on it at this stage.
However, tax officials have said that any such major policy decision could be brought as part of comprehensive package whereby Protection of Economic Reform Act 1992 might be amended through the upcoming budget.
However, the National Assembly Standing Committee on Finance which held its meeting under chairmanship of Qaiser Ahmed Sheikh threw light on different proposal for introducing amnesty scheme for offshore companies at rate ranging from 5 percent to 15 percent and even raising the rate up to 30 percent as recommended by Asad Umar from PTI to avoid perception that honest taxpayers were penalised at the cost of those who used to evade taxes in Pakistan.
The Chairman of NA Panel disclosed that State Bank of Pakistan (SBP) in their written reply, extended support for asking questions related to source of income on money sending into Pakistan in shape of remittances. But the representative of SBP who was present in the meeting said that he did not know about it.
Asad Umar belonging to PTI argued that there should be reasonable threshold resulting into excluding 90 percent remittances from any change in law where source of income might be questioned for enjoying exemption.
But the Chairman FBR Dr Mohammad Irshad replied different queries cautiously by stating that budget related proposals were secret and could not be disclosed publicly.
When insisted by the Parliamentarians, the Chairman FBR said that the Tax Reform Commission (TRC) had proposed scheme for regularising assets outside Pakistan with tax rate of 15 percent and they were considering this proposal but nothing so far finalised on this subject related to upcoming budget 2017-18.
