Amnesty ordinance promulgated

The government has issued a presidential ordinance to extend the date for filing of declarations under Voluntary Declaration of Domestic Assets Act, 2018 and Foreign Assets (Declaration and Repatriation) Act, 2018. Sources told Business Recorder here on Saturday that the scheme has been extended for a period of one month till July 31, 2018.
Earlier, a summary for extension in amnesty scheme was presented in the cabinet meeting chaired by caretaker Prime Minister Justice (retd) Nasir-ul-Mulk for amendments in the Voluntary Declaration of Domestic Assets Act, 2018 and Foreign Assets (Declaration and Repatriation) Act, 2018. So far, the FBR received 51,000 declarations with tax deposit of over Rs 100 billion till June 30 under the amnesty scheme.
Sources said that the FBR has provisionally collected Rs 3755 billion against revised target Rs 3935 billion during whole fiscal year of 2017-18, reflecting a shortfall of Rs 180 billion. The cabinet approved an amendment to include National University of Technology (NUTCH) in Schedule-II of Rules of Business, 1973. The meeting approved Financial Institution Rules, 2018 and appointing FIA as the investigating agency as required under Section 20(7) of Financial Institutions (Recovery of Finances) Ordinance (FIRO), 2001.
Budget of Capital Development Authority for the year 2018-19 was also approved by the cabinet. The meeting also discussed, in detail, the issue of extension in stay of the Afghan refugees and decided to grant an interim extension of three months to the registered refugees present in the country. It was further decided to place the matter before the incoming elected government. The finance minister also briefed the cabinet about the deliberations during the recently held meeting of Financial Action Task Force (FATF) in Paris.
FBR press release adds: Federal cabinet, on the recommendations of the Finance Minister, has approved extension of closing date of tax amnesty schemes for declaration of foreign assets and domestic income and assets till July 31st, 2018. This has been effected through a Presidential Ordinance.
The deadline for filing amnesty declarations was June 30th, 2018. However, during last week a large number of representations have been received from trade bodies, professional associations and general public for extending the closing date due to short operational period after clearing legal and procedural challenges.
The extension was also needed to remove ambiguities through clarifications and explanations required to provide certainty to the general public and to ensure effective implementation of the schemes. In addition, declarants of foreign assets faced problems in the payment of tax on foreign assets and repatriation of liquid assets.
The Finance Minister recommended extension of the cut-off date for availing amnesty schemes as there has been an overwhelming demand and response, which is on the rise. The date has been extended by one month to enable general pubic to file declarations for undeclared foreign assets and undeclared domestic assets and income and thereby get their tax affairs in order. It will also help the government in bringing undocumented persons, assets and income into the documented sector. Depending on flows, the schemes have potential to bring in macroeconomic and fiscal stability in the economy.