ISLAMABAD - The Federal Board of Revenue (FBR) would unlikely to recommend next government to extend tax amnesty scheme.

"Although the new government after upcoming general election will decide to extend the tax amnesty scheme, which is expiring on July 31 yet FBR would not recommend the government to give further extension to the scheme," said an official of the FBR. The FBR would start taking action against those who are not declaring their assets after expiry of the scheme, he added.

The government in April this year had announced two tax amnesty schemes, namely, Foreign Assets (Declaration and Repatriation) Ordinance, 2018 for undisclosed foreign assets and Voluntary Declaration of Domestic Assets Ordinance, 2018 for undisclosed income and domestic assets.

"The scheme offered a golden opportunity to the people holding undeclared and undisclosed income and assets to declare them simply by paying a nominal 2percent tax on declaration and repatriation of foreign assets, 3 percent on declaration of immovable foreign assets and 5 percent on declaration and non-repatriation of assets under the Foreign Assets (Declaration & Repatriation) Act, 2018 and Voluntary Declaration of Domestic Assets Act 2018 duly approved by the Parliament," said Member Taxpayer Audit FBR Ms Nausheen Javaid Amjad while speaking to a large gathering of traders, businessmen and members.

She further said that the tax amnesty had already been extended for a month and there were no chances of its further extension. "I sincerely advise the people to make use of this amnesty in their own interest to declare their undisclosed assets as this window of opportunity would not last long and the people failing to avail it off would have to face detection under the new international regime for exchange of information, taxation at normal rates on declared foreign assets and income without any time limitation as well as penalty and prosecution in addition to tax on their undeclared assets and income.".

So far, 55,225 declarations have been filed in which declared value of foreign assets is around Rs577 billion and that of domestic assets is around Rs1,192 billion.

Declarants have paid around Rs97 billion out of which around Rs. 36 billion have been collected on foreign assets and 61 billion on domestic assets. In addition, $ 40 million has been repatriated. This response to the amnesty schemes has been unprecedented.

The original closing date for filing declarations under the amnesty scheme was June 30th, 2018. It has been extended till July 31st, 2018 on account of representations from trade bodies, professional associations and general public due to short operational period after clearing legal and procedural challenges and problems faced by declarants in the payment of tax on foreign assets and repatriation of liquid assets.

The Presidential Ordinances dated June 30th, 2018 amended the amnesty acts to extend the applicability date of the schemes and to include explanations on ambiguities such as exchange rate. The amendment Ordinances have also provided for revision of declarations.