A division bench of the Appellate Tribunal Inland Revenue (ATIR) has asked the Chairman of the Federal Board of Revenue (FBR) to amend Voluntary Declaration of Domestic Assets Ordinance, 2018 to resolve fundamental matters in the amnesty scheme, protect the interest of revenue and facilitate taxpayers.
According to the order of the two-member division bench (headquarters) Islamabad of the ATIR, comprising Accountant Member Nadir Mumtaz Warraich and Judicial Member MM Akram: "In view of the sensitivity of the matter, we direct AR (Roster) of this Tribunal to send a copy of this order to chairman FBR to consider initiating a review/propose amendment in the statute namely Ordinance IV of 2018 (called the Voluntary Declaration of Domestic Assets Ordinance, 2018) as the provisions of the Amnesty Schemes/Ordinances are contradictory and to streamline and protect the interest of revenue and at the same time facilitate the taxpayers, else a Pandora's box may be opened for the amnesty scheme." It is further directed that in order to avoid the possibility of mere replication of the earlier, the final order would be made with the written responsibility of the commissioner IR concerned having jurisdiction over the case as provided for in Chapter XI (Administration) of the Income Tax Ordinance, 2001.
The appeal was filed by the taxpayer, who availed the amnesty scheme, against Order No 257 of 2018 passed u/s 129 of the Income Tax Ordinance, 2001 by Commissioner IR (Appeals-III), Rawalpindi.
The ATIR order stated that in the light of the discussion and to arrive at specific and focused findings of the issues framed and the foregoing discussion, it would be appropriate and in the interests of justice to vacate orders of both the authorities and remand the case to assessing authority with the direction to re examine the case, record cogent and detailed reason on each issue framed and to pass speaking order after providing adequate opportunity of hearing to taxpayer. The taxpayer is also directed to cooperate in submission of relevant record during proceedings.
The ATIR has heard arguments of learned AR and the DR, perused the record available before it during court proceedings, relevant precedents and examined the orders of the authorities. Certain fundamental matters remain unresolved and the authorities have not grappled with the core issues which need to be framed. Hence the issues arising out of this appeal are framed, as under:
I. Ordinance IV of 2018 ( called the Voluntary Declaration of Domestic Assets Ordinance,2018) does not cater to /does not cover sales which have been subjected to addition u/s 111.
II. Section 8 sub-section (2) of Ordinance IV of 2018 (Voluntary Declaration of Domestic Assets Ordinance,2018 ) and Ordinance III of 2018 (Amnesty of assets held out of Pakistan) relate to foreign assets and how to reconcile with the definition of "domestic assets " as defined in section 2(1) (b) of Ordinance IV of 2018 (Voluntary Declaration of Domestic Assets Ordinance, 2018 ) and "Application" as specified in section 4 of Ordinance IV of 2018 and as section 5 is not concerning foreign assets but domestic assets held within Pakistan
III. The words "persons" and " income" are not provided for in section 2 of Ordinance IV of 2018 (Voluntary Declaration of Domestic Assets Ordinance, 2018 ) and the meanings and expressions as defined in the Income Tax Ordinance, 2001 is not relevant here
IV. The word "persons" is mentioned in section 4 (2) of Ordinance IV of 2018 (Voluntary Declaration of Domestic Assets Ordinance, 2018) but is not specified in section 4 (1) from which it cannot be reasonably inferred as to whether the word "persons" includes a company or an association of persons or citizens.
V. Stock in trade does not cover sales and is also to be valued at market rate as on the 9th April, 2018 as provided for in section 10 of the Voluntary Declaration of Domestic Assets Ordinance, 2018.
VI. How stock in trade is to be valued at market rate as per statutory sanction.
VII. As per the AR the identification of the asset proposed to be declared is not allowed in Form A due to accessibility by the FBR.
VIII. How the income disclosed under Amnesty at Rs 1 million covers or can be stretched to extend to sales of Rs 73 million in consonance with the Voluntary Declaration of Domestic Assets Ordinance, 2018 and the correlation thereof.
IX. Only income and domestic assets specifically included in the Voluntary Declaration of Domestic Assets Ordinance,2018 and sales have been excluded.
X. Sales are not mentioned in section 9 (Incorporation in the Books of accounts) of the Voluntary Declaration of Domestic Assets Ordinance, 2018.
Comments
Comments are closed.