High time people declare assets abroad: FBR

Global order moving towards full disclosure

KARACHI: It is high time people with undeclared assets both within the country and abroad declare them at minimum tax rates under the amnesty scheme, said Federal Board of Revenue (FBR) Chairman Tariq Mehmood Pasha.

Undeclared assets and untaxed income have now become an international constraint, added the official.

He has been meeting businesspersons in Karachi to encourage them to avail the scheme, which has been devised to bring wealth accumulated abroad back to the country.

Pasha said that things ahead would be difficult for people who do not declare their assets under the amnesty scheme as countries around the world have started scrutinising and investigating foreign funds. Dubious funds would be confiscated, even before the FBR identifies it.



"The untaxed income will not only be confiscated abroad, but the person behind those assets could even be sent to jail. So, the amnesty scheme is the last chance for people to save their assets," Pasha said during his visit here at the Federation of Pakistan Chamber of Commerce and Industry head office on Saturday. Earlier on Friday, he also visited the Karachi Chamber of Commerce and Industry (KCCI).

"I must remind you that this amnesty scheme is the last warning for people to save their assets abroad," he reiterated.

The FBR chairman said that the assets and property owned on someone else's name can be disclosed under the scheme, except those which are currently running in courts. All legal protection would be provided to assets that are declared under the amnesty scheme.

He further said that people could not have gotten a better deal as assets are being whitened against a minimum expense.

The amnesty scheme was previously not taken seriously after the Supreme Court showed apprehension regarding it. But lately the court has given it a green signal, which has now made the scheme enticing.



"The Supreme Court has actually praised this scheme for facilitating repatriation of foreign assets," Pasha said, adding that the aim of this scheme was not to collect tax but to bolster the country's economy.

The FBR would raise the issue of delay of Telegraph Transfer from abroad to the State Bank.

Pasha further said that most remittances under the amnesty scheme were being received from the Gulf countries.

He said that international anti-money laundering laws and Financial Action Task Force (FATF) regime restricts them from further relaxing this scheme. It is the basic reason that it was mandatory to declare foreign funds and send the applicable tax on these funds either from personal account or from a sister, brother, wife, son, daughter or parent's accounts.

"Pakistan has become a member of Multilateral Convention Agreement between 102 countries, enabling us to gain access to information of those Pakistanis who have bank accounts abroad with effect from September 1, 2018," he said.

Published in The Express Tribune, June 24th, 2018.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.