Amnesty beneficiaries to file returns for declared assets for tax year 2018

KARACHI: Taxpayers availing tax amnesty scheme are required to separately file income and wealth statements for undisclosed foreign and domestic assets for the tax year 2018, officials said on Thursday.

Tax officials said the returns filed under amnesty are only to declare concealed assets of the past years.

“This will not be treated as annual return,” an official of the Federal Board of Revenue (FBR) said.

Officials said the tax year mentioned in the return form for amnesty declaration is 2018 (July 2017 to June 2018) and there is a general belief that declarants don’t need to file income and wealth statements under the amnesty scheme.

In April, the previous government announced tax amnesty scheme, which would expire by June 30, to give residents one-off tax benefits for repatriating undeclared local liquid assets with a five percent penalty, undeclared foreign liquid assets with a two percent penalty (if repatriated, or a five percent penalty if remaining abroad or in foreign currencies), and

undeclared fixed assets – whether held locally or abroad – with a three percent penalty.

The FBR received Rs36 billion in tax revenue under the amnesty program for undeclared local and foreign assets till early this week.

The return filing for tax year 2018 is due in August for individuals and in December for corporate entities.

The FBR said individuals availing amnesty schemes would not be able to declare income earned from July 1, 2017.

The FBR said an individual cannot file declaration for the income earned during the period from July 1, 2017 to April 9, 2018 under the amnesty scheme.

“It is because this income falls in tax year 2018 and Income tax return for the tax year 2018 is not due by the commencement date of the amnesty schemes or the last date of applicability of the scheme,” the FBR added.

Tax officials said the individuals already filed returns for tax year 2017 and availing amnesty scheme would remain on the active taxpayers list (ATL).

The appearance of name on the ATL is mandatory for a taxpayer in order to avail the reduced rates of withholding income tax and other benefits of being return filer.

The officials, however, said individuals filing declarations under amnesty scheme and enrolled on the tax net for the first time will require to file their annual income and wealth statement for tax year 2018 and have to wait till March 2019 for the appearance of their names on the ATL.

The FBR issues new ATL every year on March 1, carrying names of return filers for preceding tax year.