The government is planning to introduce another tax amnesty scheme to attract non-filers into the tax net and attach incentives against whitening the untaxed money kept at home or abroad.
According to a media report, work on the new scheme is in progress to provide sufficient time to people to avail the scheme before the implementation of the International Monetary Fund (IMF) program. It will be difficult for the government to announce such incentives after securing the bailout package from the IMF.
Moreover, the report further states that the Federal Board of Revenue is mulling over several options like the ease of filing returns, giving incentives for return filing, and dispatching emails to potential taxpayers regarding the exact amount of tax and asset details they are required to submit.
“We have financial transactions data and other material collected from National Database and Registration Authority,” states the report citing an official of Finance Division.
Non-Filers of Return
The FBR has gathered data from numerous resources like utility corporations, banks, car manufacturers, and the immigration department etc. to locate wealthy individuals whose names do not appear on the tax rolls.
People who have not registered on the tax rolls, but possess untaxed wealth and reside in posh areas, will be targeted. If a person fails to comply with the notice, a provisional assessment will be conducted.
The individual will still have the option to file a return along with a wealth statement and reconciliation within 60 days. By this duration, the provisional assessment order will automatically be initiated.
Moreover, if the person fails to file returns along with the requisite documents within 60 days, the tax liability will be final and recoverable. The panel prosecution proceeding, ensuing in fines and imprisonment, will also begin in selected cases to create deterrence.
The incentive package will also comprise of early refunds to over 4000 over-taxed small salaried taxpayers.