Tax dodgers: Govt considering out-of-court settlements
Decision not yet finalised, SECP asked to step up CGT enforcement.
ISLAMABAD:
The government is contemplating offering out-of-court settlements to those accused of having obtained illegal tax adjustments with the connivance of tax officials in a bid to recover the disputed Rs86 billion.
The proposal was made during the meeting of the Tax Reforms Core Group, headed by Finance Minister Abdul Hafeez Shaikh, in Islamabad on Friday. The government proposed incentivising those stuck in litigation against the Federal Board of Revenue (FBR).
Sources said that the FBR has already discussed the proposal with international lenders and various business lobbies. The suggestion comes at a time when the FBR has geared up to meet the daunting task of collecting Rs1,200 billion in revenues during the remainder of the current fiscal year ending June 30, 2012.
So far, the FBR has collected about Rs760 billion against the first-half target of Rs848 billion. For December, it has set the target at Rs208 billion and so far about Rs120 billion has been collected and another Rs12 billion was in the pipeline for Friday.
Nonetheless, the decision has not yet been finalised, said FBR Chairman Salman Siddique, while speaking to The Express Tribune. The government is likely to offer the accused a chance to pay back the taxes they owe in instalments.
Siddique said that the government had confirmed at least Rs32 billion in illegal adjustments and detected at least Rs54 billion worth of possible illicit activity.
According to an official handout, the TRCG discussed the progress on the new centralised audit system and revenue collection. The group also discussed the proposal to stamp the cigarette packs to discourage smuggled cigarettes in the country and reviewed the enforcement of capital gains tax (CGT).
The group directed Securities and Exchange Commission Chairman Muhammad Ali to give a presentation in the follow-up meeting along with relevant data and strategy for the enforcement of CGT. The FBR has been struggling to collect CGT on stock market transactions.
Published in The Express Tribune, December 24th, 2011.
The government is contemplating offering out-of-court settlements to those accused of having obtained illegal tax adjustments with the connivance of tax officials in a bid to recover the disputed Rs86 billion.
The proposal was made during the meeting of the Tax Reforms Core Group, headed by Finance Minister Abdul Hafeez Shaikh, in Islamabad on Friday. The government proposed incentivising those stuck in litigation against the Federal Board of Revenue (FBR).
Sources said that the FBR has already discussed the proposal with international lenders and various business lobbies. The suggestion comes at a time when the FBR has geared up to meet the daunting task of collecting Rs1,200 billion in revenues during the remainder of the current fiscal year ending June 30, 2012.
So far, the FBR has collected about Rs760 billion against the first-half target of Rs848 billion. For December, it has set the target at Rs208 billion and so far about Rs120 billion has been collected and another Rs12 billion was in the pipeline for Friday.
Nonetheless, the decision has not yet been finalised, said FBR Chairman Salman Siddique, while speaking to The Express Tribune. The government is likely to offer the accused a chance to pay back the taxes they owe in instalments.
Siddique said that the government had confirmed at least Rs32 billion in illegal adjustments and detected at least Rs54 billion worth of possible illicit activity.
According to an official handout, the TRCG discussed the progress on the new centralised audit system and revenue collection. The group also discussed the proposal to stamp the cigarette packs to discourage smuggled cigarettes in the country and reviewed the enforcement of capital gains tax (CGT).
The group directed Securities and Exchange Commission Chairman Muhammad Ali to give a presentation in the follow-up meeting along with relevant data and strategy for the enforcement of CGT. The FBR has been struggling to collect CGT on stock market transactions.
Published in The Express Tribune, December 24th, 2011.