Despite getting legal powers to tax offshore assets
, the FBR's drive to collect revenue from these people has so far remained unsuccessful.
The bill includes three main sections dealing with the concealment of offshore assets
, namely 192B, 195A and 195B.
As previous schemes, its purpose was to encourage people to become tax filers by being allowed to declare their hidden domestic and offshore assets
. As per the scheme, tax evaders were given an opportunity to declare their hidden domestic and offshore assets
at 5% tax rate.
People successfully managed to transfer their ill-gotten money to offshore destinations from Pakistan due to weak taxation system, economic protection act, 1992 and other reasons and purchased offshore assets
without declaring them in their tax returns.
He recently also advised the Supreme Court in a case concerning offshore assets
owned by Pakistanis.
The chairman NAB had said those who had illegally plundered wealth in the country had made big offshore assets
like plazas and valuable assets in different countries.
The authorities were not very keen to offer the tax amnesty scheme on the offshore assets
The FBR Chairman briefed the Prime Minister about the progress on the steps taken to detect offshore assets
and properties of Pakistani citizens and the recovery of taxable amount under the country's laws.
Meanwhile, after making a formal protest over the absence of the finance minister and ministry secretary, the Senate Standing Committee on Finance has rejected the Pakistan Tehreek-e-Insaf (PTI) government's move for provisional assessment of offshore assets
and disallowing tax incentives for PSL (Pakistan Super League) franchises for sports.
The scope of this Section is proposed to be extended to discovery of undeclared offshore assets
through the current Finance Bill.
FBR said it already had information about bank accounts of Pakistanis from 26 countries and the proposed amendment to Section 123 of the ITO would enable the tax collection body to move swiftly for taxing people involved in holding offshore assets
ON the face of it, the latest Federal Government Executive Order (008) on the regularisation of offshore assets
would appear to be a step in the right direction.