Another chance likely to legalise undisclosed money
NBR Chairman Muhammad Abdul Mazid
Undisclosed money holders are likely to have another chance in the next budget to legalise their concealed earnings with fine, which will increase year-wise.
“The government is considering giving the undisclosed money holders another chance in the next budget to legalise their portions of money that have been earned legally,” said NBR Chairman Muhammad Abdul Mazid, adding, “This time the undisclosed money holders will have to pay higher fine to ensure justice.”
He said the government is planning to give the chance in response to a plea made by a large number of people.
Mazid said, “In case of anyone who had earned money in 1980 legally, but failed to make any mention of it in his/her income tax statement for any reason, we're going to impose fine for the years that have elapsed in between disclosure and earning.”
The NBR chief said the board is yet to fix the rate at which the fine should be imposed.
Responding to a question, Mazid echoed the Finance Adviser saying, “Let me assure you that there'll be no room for legalising the undisclosed money earned through illegal means.”
He also hinted at government's decision to reduce the discretionary power of taxmen to root out corruption from the NBR.
At present, the taxmen have discretionary power to impose fine from 1 percent to 250 percent on anyone who has been found evading taxes.
“Corruption starts right at the point of imposing fine. The taxmen and taxpayers begin negotiations to reduce the rate at which fines should be imposed and, in the process, deprive the government of revenue,” the NBR chairman said.
Regarding the demand for raising the tax ceiling, Mazid said the issue is under review.
Replying a query about boosting revenue collection without imposing new tax, he said, “We follow the path of revenue collection. We're trying to bring the taxable people under the tax net through self-motivation. We're continuing our hectic drive in this regard.”
He went on, saying, “Once our officials used to go to the taxable people to bring them under tax net. But now we've changed the method. We request the chambers, trade bodies and other professional organisations to motivate their members for paying taxes. They (chambers, trade bodies and other professional organizations) will collect the tax from the individual taxpayers and we'll collect from them.”
He also mentioned that from July next the taxpayers would fill in their income tax return in a new but easier income tax form that include all the necessary explanations. “I think it'll give a welcome relief to the taxpayers during the submission of their income tax return.”
He said the NBR is crosschecking the documents of the taxpayers from various sources. “No one can evade tax, it's not possible, the evaders will, at least, leave some evidence of his or her tax evasion along the way,” he said.
For example, he said, an importer can give wrong statement in his/her tax papers. But when the importer will submit the documents in banks for various purposes the evidence of tax evasion will come out. “We're cross-checking these types of documents from various sources. So, there is no way to escape,” Mazid said.
“This year we covered each side of a sector, not a stone has been left unturned. We're trying to accommodate suggestions from all stakeholders after strict scrutiny,” he said.
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