Resident individuals: FBR prescribes ‘foreign income and assets statement’

ISLAMABAD: The Federal Board of Revenue (FBR) has prescribed a “foreign income and assets statement” for resident individuals seeking particulars/details of the person’s total foreign assets/liabilities.

The FBR has notified S.R.O. 747(l) 2023 to issue draft of certain further amendments in the Income Tax Rules, 2002.

The FBR has issued the statement of foreign income and assets for tax year 2023 onwards.

Under the income tax law, every resident taxpayer being an individual having foreign income of not less than US$10,000 or having foreign assets with a value of not less than USD 100,000 shall furnish a statement (foreign income and assets statement), in the prescribed form and verified in the prescribed manner giving particulars of (a) the person’s total foreign assets and liabilities as on the last day of the tax year; (b) any foreign assets transferred by the person to any other person during the tax year and the consideration for the said transfer; and (c) complete particulars of foreign income, the expenditure derived during the tax year and the expenditure wholly and necessarily for the purposes of deriving the said income.

The Commissioner may by a notice in writing require any person being an individual who, in the opinion of the Commissioner on the basis of reasons to be recorded in writing, was required to furnish a foreign income and assets statement but who has failed to do so to furnish the foreign income and assets statement on the date specified in the notice, it added.

According to the FBR’s S.R.O. 747(l) 2023, a foreign income and assets statement shall begin the form specified in Part IVA of the Second Schedule to these rules providing the particulars of the person’s total foreign assets and liabilities as on the last day of the tax year.

The data will also contain details of any foreign assets transferred by the person to any other person during the tax year and the consideration for the said transfer and complete particulars of foreign income, the expenditure derived during the tax year and the expenditure wholly and necessarily for the purposes of deriving the said income.

The expenditure verified in the manner specified in the form; and accompanied by such documents, statements and certificates as specified in the form and in the Ordinance, these rules and circulars issued under the Ordinance.

Failure to furnish foreign income and assets statement by every resident individual required to be furnished under this rule shall be subject to penalty under S. No. lAAA of sub-section (1) of section 182 of the Income Tax Ordinance, 2001.

Copyright Business Recorder, 2023