Islamabad: The Senate Standing Committee on Finance on Thursday has approved the proposal to indefinitely extend the time limit for serving tax notifications in cases involving undisclosed assets overseas, and tax evasion through lucrative gifts, news sources reported. The amendments were proposed by the Federal Board of Revenue Operational Wing and will be included in the Finance Bill 2021-22 before it is approved by parliament.
Previously, the maximum limit for serving notices was five years, which is now being lifted. However, it is worth noting that tax notification can be averted provided that the commissioner is satisfied with the individual’s reason for not disclosing foreign assets.
As for tax evasion through ‘suspicious’ gifts, the FBR has reported a transaction activity of PKR 170 billion in the names of gifting the relatives in the previous year.
Additionally, amendments were also introduced to allow tax collection from people residing outside the country through bilateral and multilateral agreements with the countries.
The committee also retained the tax exemption status of medical and provident fund of employees. Similarly, a three-month extension is provided for the payment of the last fourth tranche of taxes under the 2019 tax amnesty scheme. Further, the bill now would require FBR declaration for business accounts.