Draft Assets Declaration (Procedure, Conditions) Rules, 2019: FBR asks stakeholders to submit comments

Federal Board of Revenue (FBR) has asked stakeholders to submit comments on the draft Assets Declaration (Procedure and Conditions) Rules, 2019 by Wednesday (today). According to the draft of the Assets Declaration (Procedure and Conditions) Rules, 2019 issued by the FBR here on Tuesday, the draft Assets Declaration (Procedure and Conditions) Rules, 2019 is uploaded on FBR's web portal for objections and suggestions by any person, if any, which may be provided on or before May 22, 2019 to FBR.
The FBR has specified conditions for making declaration. For the purposes of incorporation of undisclosed assets and undisclosed expenditure declared under the Assets Declaration Ordinance, 2019, where income tax return for tax year 2018 has not been filed, the declarant shall, along with the declaration or such date as extended by the Board, file income tax return for the tax year 2018 and wealth statement or financial statement, as the case may be, as on June 30, 2018. Where income return for tax year 2018 has been filed under the provisions of the Income Tax Ordinance, 2001, the declarant shall, along with the declaration or such date as extended by the Board, revise income tax return and financial statement filed for tax year 2018, if the declarant is a company; or wealth statement, if the declarant is an individual or an association of persons.
Under the draft rules, where a person declares undisclosed sales in terms of section 3, he shall declare the undisclosed sales subject to the Sales Tax Act, 1990 and the Federal Excise Act, 2005 from July 2014 to June 2018, in the first sales tax and federal excise return, due after the declaration.
In case of payment of tax on foreign assets, the value of such assets shall be declared in respective foreign currency on Board's web portal; tax shall be paid in foreign currency as per procedure specified by the State Bank of Pakistan at the rate specified under the Ordinance. In case of tax payment after June 30, 2019, liability of tax and default surcharge shall be paid in foreign currency as per procedure specified by the State Bank of Pakistan and will be calculated in Pak rupees at an exchange rate prevailing on the date of payment.
In case of foreign assets not being repatriated into Pakistan, if such assets represent cash or any other bearer assets, the same or its proceeds shall be deposited and retained in a foreign bank account of the declarant till June 30, 2019 and bank statement as evidence thereof, shall be provided by July 30, 2019 or such date as extended by the Board.
The draft rules said that the default surcharge and penalty shall not apply if tax determined by an officer of Inland Revenue in the original order, is paid up to June 30, 2019; and such original order or an appellate order passed against such original order has not yet attained finality.
An original order passed by an officer of Inland Revenue or an appellate order passed by an appellate authority shall be taken to be final if no right of appeal has been provided against such orders or no appeal has been filed within the time limit prescribed under the applicable laws against such orders, the draft rules said.
Where the declarant has paid tax under the Ordinance, no tax shall be payable by the declarant under the Income Tax Ordinance, 2001, the Sales Tax Act, 1990 and Federal Excise Act, 2005 in respect of such undisclosed assets, undisclosed expenditure or undisclosed sales.
The FBR stated that any person who having filed a declaration (original declaration)- discovers any omission, mistakes, computational error or wrong statement therein may file revised declaration within the due date specified in section 3 of the Ordinance subject to the condition that the value of assets and the tax paid thereon shall not be decreased, the FBR rules added.