Speaking at Q&A seminar on amnesty scheme 2019 organized by Karachi Tax Bar Association (KTBA) at RTO building here, they said: "Although we are supporting FBR for the scheme, they should relax the last date of scheme by July 31 to make it successful."
Zeeshan Marchant of KTBA during his electronic presentation cited several issues and requested the chief guest of the event Seema Shakil, Member IR for clarification. The questions raised during seminar are as follow:
If a property is declared at Rs 10 million and is sold subsequently at Rs 15 million, the resultant capital gain would be Rs 5 million and capital gains tax under section 37 would be paid on Rs 5 million.
If a value of property is enhanced for instance from Rs 1 million to Rs 2 million, then the date of acquisition remains the same at which the property was first declared.
Any property purchased during Tax Year 2019 between July 01, 2018 up to January 31, 2019 (FBR Rates revised on February 01, 2019), shall be deprived of the benefit of enhancing the value as the person who is declaring property or enhancing the value of property will be benefitted and the person who has purchased after tax year 2018 will not be able to declare at the new FBR Rates, therefore, it is requested to consider allowing enhancement from old FBR rates to 1.5 times of new FBR rates. If an appeal is pending up to Tribunal as per section 3 explanation (a), any income assessed relatable to undisclosed asset and/or expenditure, the taxpayer can pay 4% tax on assessed income by availing the scheme??
If an appeal is pending before High Court or Supreme Court, as per section 6(4), the taxpayer can pay the original demand and penalty and default surcharge would be waived?
As per section 7, assets and expenditure can be incorporated in the books of accounts after the tax is paid; whereas under the rules the condition to submit the revised form is along with filing of asset declaration form.
In response to the questions, member IR said that capital gains tax under section 37 would be deducted only on gain and the date of acquisition would not be changed and remained the same at which the property was first declared, if the property value was increased.
She said that any property purchased on or before January 31, 2019 could not be declared under this scheme besides FBR would waive penalty and default surcharge if the tax demand was paid in those cases where appeals were pending before High Court or Supreme Court.
Similarly, the taxpayer can pay 4% tax on assessed income under the scheme if the case is pending to tribunal; she said and requested the KTBA members for submitting revised returns along with assets declaration form.
The seminar, which was attended by Qadir Memon, president Pakistan Tax Bar Association, Mohammad Rehan Siddiqui, president KTBA, Zafar Ahmad general secretary KTBA, all chief commissioners, corporate commissioners, received overwhelming response from the members.