The Federal Board of Revenue (FBR) and the Directorate General of International Tax (Operations) have decided to hold road shows in the United Arab Emirates (UAE), United Kingdom (UK), USA and Canada for encouraging overseas Pakistanis there to declare and repatriate their undisclosed assets to Pakistan under the Assets Declaration Scheme 2019.
Sources told Business Recorder here on Thursday that the FBR has devised a comprehensive strategy on the offshore assets under the Assets Declaration Scheme 2019, as foreign asset is a very important component of the scheme. The strategy of holding road shows aboard has been approved by the FBR chairman and will be led by Directorate General of International Tax Operations. It would focus on all activities and engagements relating to the offshore assets. The strategy has been devised at the FBR level, which would be further refined and implemented with the approval of the political leadership.
The Assets Declaration Scheme 2019 is an excellent opportunity for the owners of undeclared foreign assets to have them whitened at the nominal rates. In order to encourage the maximum number of offshore asset holders to avail the ADS 2019, a comprehensive strategy has been devised by the international taxes wing of the FBR.
According to sources, the government wants to encourage Pakistani Diaspora to repatriate their assets into Pakistan through the Assets Declaration Scheme 2019. The FBR will address the concerns of the overseas Pakistanis living in the UAE, UK, Canada and USA and respond to their queries on the spot.
During the road shows, the overseas Pakistanis will be informed about the advantages of availing the scheme and disadvantages of not legalising assets held abroad. The Pakistani Diaspora would be completely facilitated for repatriation of their movable and unmovable assets held abroad.
Out of total Rs 1 trillion worth foreign assts whitened under the last tax amnesty scheme, Pakistanis in the UAE declared assets worth Rs 346.2 billion, Switzerland Rs 114.8 billion, UK Rs 89.7 billion and foreign assts worth Rs 87.3 billion were whitened by Pakistanis in Singapore.
Keeping in view the highest value of assets whitened in the said countries under the last tax amnesty, the FBR has decided to hold road shows in the UAE, USA, UK and Canada to brief Pakistanis living in these countries about the Assets Declaration Scheme 2019 and address their concerns.
In remaining countries, Pakistan's ambassadors in Europe and other countries will engage Pakistani Diaspora so they can avail the scheme of foreign assets. Other major destinations are Azerbaijan, Turkey, Malaysia, Ukraine, France, Germany, Spain, Ethiopia and Ghana.
Sources said that the Directorate General of International Tax (Operations) would also engage Ministry of Foreign Affairs and embassies to focus on Pakistanis in different countries. The FBR will give particular focus on high value destinations to encourage Pakistanis there to whiten and repatriate their money and assets.
FBR Chairman Shabbar Zaidi and Director General of International Tax (Operations) Muhammad Ashfaq Ahmad are expected to go for the road shows abroad in collaboration with the Pakistani embassies aboard.
A contact point has been established at the FBR International Taxes to remove difficulties of the overseas Pakistanis for declaration of assets abroad.
Pakistan undertook first bank and financial account data exchange under the OECD framework on September 30, 2018. In the process Pakistan sent out data to 41 countries and received from 26 countries; this number is likely to be in excess of 70 by September 30, 2019. While the process of preparing raw data for the utilisation is on, the work done so far indicates that the Pakistan's offshore problem is sizeable. This view is further strengthened by the circumstantial evidence generated by Panama Leaks, Dubai Leaks, Paradise Leaks and other one-off scandals of the rich people having offshore assets. It is understandable that most of these assets might not have been declared by their owners.
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