Finance Bill 2024: Wealth Statement now in sharp focus

ISLAMABAD: The Finance Bill 2024 has empowered Commissioner of the Federal Board of Revenue (FBR) to direct any individual to furnish wealth statements, including details of foreign assets.

A tax expert explained that the Commissioner is empowered to require any individual to furnish wealth statements in a prescribed form and manner, providing particulars of assets and liabilities.

The Finance Bill 2024 has proposed that assets will include foreign assets in the wealth statement.

Finance Bill 2024: FBR sets up two ‘anomaly committees’

The new Bill proposes to extend the scope of best judgment assessment under section 121 of the Ordinance. This extension will now include cases where an individual or entity is directed to file a return of income following the discontinuance of their business operations.

This amendment aims to ensure that tax obligations are accurately assessed and fulfilled even in situations where a business ceases to operate, thereby maintaining compliance and accountability in the tax system.

Tax expert added that the section 126A was introduced vide by Tax Laws (Amendment) Act 2024 to provide pecuniary jurisdiction of appeals. Finance Bill now provides explanation that for the purpose of this section value of assessment of tax matters means the net increase in tax liability and value of refund means net reduction in refund as a result of order sought to be assailed.

Under this section, the cases pending before Commissioner Appeals were specified to be transferred to Appellate Tribunal on and from 16 June 2024 but this date has now been proposed to be substituted by 16 September 2024.

The extension is proposed in view of huge amount of cases due to be transferred because of monetary limit specified and inability to issue decisions before June 16, 2024, he added.

Copyright Business Recorder, 2024