Amnesty scheme: Presidential Ordinance is required to extend the deadline

The government would be required to issue a presidential ordinance on June 30 (Saturday) to extend the date for filing of declarations beyond June 30, 2018 under Voluntary Declaration of Domestic Assets Act, 2018 and Foreign Assets (Declaration and Repatriation) Act, 2018.
Sources told Business Recorder here on Friday that a presidential ordinance is required to extend the date for filing of declarations beyond June 30, 2018. Under the section 6 (period of applicability) of the Voluntary Declaration of Domestic Assets Act, 2018, the declaration will be made on or after April 10, 2018 but on or before June 30, 2018.
Under the Foreign Assets (Declaration and Repatriation) Act, 2018, the declaration and repatriation will be made on or after the April 10, 2018 but on or before June 30, 2018. Both the said acts need amendments for extension in date for filing of declarations under the amnesty scheme.
In this regard, tax authorities have reportedly held a meeting with the officials of Law Ministry here on Friday to discuss the legal implications of issuance of a presidential ordinance to extend the date for filing of declarations beyond June 30, 2018 under Voluntary Declaration of Domestic Assets Act, 2018 and Foreign Assets (Declaration and Repatriation) Act, 2018.
Renowned chartered accountant and Senior Partner AF Fergusons (PWC) Syed Muhammad Shabbar Zaidi suggested that the government should extend the date of amnesty scheme till July 20. The government has recently approved "Government of Pakistan''s US Dollars Denominated Amnesty Bonds Rules, 2018." The repatriation is expected under the said rules 2018. As people have not enough time to understand the said rules for amnesty scheme, the date for availing the scheme should be extended, he added.
When contacted, a leading tax expert Ashfaq Tola informed that the government should be very careful to avoid legal complications while extending date of filing of declarations under the amnesty scheme. There should be a maximum extension in time period up to July 20, 2018 and not beyond July 20.
Moreover, all terms and conditions of the scheme should remain the same to avoid legal implications. The extension in last date for filing of declarations should be done with systematic increase in tax rates. For example, the rate of tax be increased from 2 to 3 percent; 3 to 4 percent and 4 to 5 percent on declarations to be filed till July 10 and similarly tax rates be further increased proportionately on declarations be to filed between July 10-20.
If scheme has been extended till July 31, it would have legal complications. The people may wait for the next government to decide about the fate of the scheme in case of extension till July 31. The extension in the amnesty scheme with any possible amendment should not change the income year.
Ashfaq Tola said that amendments in the amnesty scheme should be carefully drafted so that the income year should not be changed.
As far as the cost of accusation is concerned, its legal interpretation should be carefully done by the tax officials in line with the law, the tax expert added. It is learnt that the Federal Board of Revenue has received over 45,000 declarations under the amnesty scheme with payment of tax of around Rs 60 billion whereas payment slip IDs i.e. PSIDs of Rs 62 billion have been issued so far.