20000328

Traders advised

to benefit from

tax amnesty scheme

RECORDER REPORT

KARACHI: The Regional Commissioner of Income Tax, Mohammed Shafi Malik has advised the business community to avail of the opportunity under the recently announced tax amnesty scheme, saying this was the last chance to disclose hidden income.

Speaking at a meeting of the Site Association of Industry (SAI), he said non-tax payers could not escape now as the department had obtained all information from available sources about hidden income, and advised the participants to avail of this opportunity and get their black money whitened by bringing it in the book before April 30, 2000, failing which the defaulters would have to pay much higher rate of income tax, along with penalties.

He assured them that the assets declared under the scheme would not be liable to wealth tax for preceding years and would also be exempted for the next five years. These assets/un-disclosed income could also be incorporated in the books of accounts on which tax at the rate of 10 percent had been paid.

The scheme would not cover those persons against whom proceedings are pending under the National Accountability Bureau Ordinance, 1999.

Elaborating clauses 9,10 and 11 of the scheme, the commissioner said that he had received a number of proposals on the amendment in clause of the scheme during his explanatory visits to different associations and trade bodies. On the basis of these proposals , he has forwarded his own recommendations, for amendment in the scheme, to the Central Board of Revenue (CBR).

He said that he had recommended amendments in clause 10 under which an order of cancellation could be made till June 30, 2005. No assessee/declaring would ever want to have a sword hanging over his head for five years. The time period for cancellation should be realistic, he added.

He also referred to the strong opposition from many segments to the proviso of clause 10 wherein it is stated that the whole declaration would stand cancelled if any inaccuracy of income or asset is detected and or pointed out. The commissioner said there were possibilities of honest error and the benefit of doubt should be given to the declarant. He was of the opinion that this section of clause 10 also needed amendment.

Welcoming the guests, SAI Chairman Abdullah Rafi advised the business community to avail of this opportunity.