Amnesty scheme provides carrot but lacks stick

ISLAMABAD: With placement of the fresh amnesty scheme for whitening of offshore foreign and domestic assets, this amnesty provides carrot but lacks stick like all past and existing 10 amnesties introduced in Pakistan since 1958.

Now tax experts as well as FBR officers argued in background discussions by proposing powers of search and seizures for tax officers just like on pattern of India where income tax officers are authorised to seize undeclared assets and money. “The same powers should be introduced through amendment to the IT Law, 2001, where FBR officer may be authorised to seize any assets, money, gold, moveable and immoveable property, post flats and bungalows, government securities, prize bonds, vehicles and others if anyone had not bothered to declare in its filed returns,” said sources.

Under Section 132 of the Indian income tax law where the commissioner, in consequence of information in his possession, has reason to believe possesses powers to seize books of account, other documents, articles or things, including money, are kept, and if as a result of the search such books of account, other documents, articles or things, including money are found. But in Pakistan we have converted the tax machinery of FBR into toothless entity where they cannot even think to undertake any genuine work without favour or fear.

The proposed amendment empowers seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search; provided that bullion, jewellery or other valuable article or thing, being stock-in-trade of the business, found as a result of such search shall not be seized but the authorised officer shall make a note or inventory of such stock-in-trade of the business.