The Federal Board of Revenue (FBR) will not initiate proceedings againstthe legally valid declarations of amnesty scheme of 2019 under the ForeignExchange Regulation Act, 1947, Protection of Economic Reforms Act,1992, andthe Anti-Money Laundering Act, 2010 or any rules, notifications or ordersmade thereunder with respect to assets, income or expenditure declaredunder the Assets Declaration Act 2019.
The Federal Board of Revenue (FBR) has belatedly issued rules for thedeclarants of the amnesty scheme of 2019. The availing date of which wasJune 30, 2019.
The FBR has issued a draft of certain further amendments in the AssetsDeclaration (Procedure and Conditions) Rules, 2019 through a notificationissued here on Tuesday.
Under the draft rules, no declaration shall be declared void unlessdefinite information regarding misrepresentation or suppression of facts isavailable with the Commissioner Inland Revenue.
The FBR has explained the treatment of assets, income, or expenditure in adeclaration. The amount of asset, income, or expenditure in a validdeclaration shall not be included in the taxable income of the declarantfor any tax year up to and including the tax year 2018 under the Ordinance.
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The rules stated that no proceedings under any provision of the Ordinanceshall be initiated on the basis of any information relating to an asset,income, or expenditure as at June 30, 2018, or any prior period, providedthe declarant files an irrevocable written statement along with plausibledocumentary evidence to the effect that source to that extent has beendeclared in the declaration irrespective of the form of the asset orjurisdiction at the date of filing the declaration.
The rules said that the nature and source of asset, income or expenditureshall not be treated as explained and the Commissioner Inland Revenue orhis delegate shall be entitled to proceed under section III of the IncomeTax Ordinance, on the basis of definite information acquired from anysource other than a valid declaration itself, infollowing cases: Where the value of an asset, income, or expenditure, as atJune 30, 2018, as per the definite information is in excess of value as perdeclaration and where the source of the asset, income or expenditurerelates to a person other than the declarant.
The rules said that where action under section 111 of the Ordinance asundertaken in accordance with sub-rule (2) results in invalidation of thedeclaration then such an action cannot be initiated without prior approval,for reasons to be recorded in writing, of the Chief Commissioner InlandRevenue as defined in clause (lIB) of section 2 of the Ordinance.
