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Pakistanis likely to bring back $5 billion under amnesty scheme

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Pakistanis likely to bring back $5 billion under amnesty scheme
By Shahbaz Rana
Published: March 21, 2018
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Under the amnesty schemes announced by different countries, he said, people had so far disclosed $360 billion worth of assets, but they brought back only $10 billion to their respective countries. PHOTO: FILE

ISLAMABAD: As the government struggles to overcome legal challenges that can undermine an upcoming offshore tax amnesty scheme, prime minister’s aide on revenue Senator Haroon Akhtar Khan has said Pakistanis could repatriate up to $5 billion under the proposed scheme.

“Pakistanis will not possibly bring back all their offshore assets, but the scheme will be successful if they bring back $4 to $5 billion during validity of the scheme,” Khan said on Tuesday.

A chartered accountancy firm has estimated the value of offshore assets held by Pakistanis at $130 billion.

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Khan said for fiscal year 2018-19, Rs4.450 trillion would be a realistic tax collection target for the Federal Board of Revenue (FBR), which was about 11% or Rs437 billion higher than the current year’s target.

He was speaking to media after inaugurating a facility for tax payment through online banking – a step that would minimise the cost of taxes and ensure hassle-free payments.

Khan said the amnesty scheme was at the final stage of preparation, but the government was waiting for the outcome of an ongoing case in the Supreme Court which was deliberating on how to bring back the money stashed abroad by using various channels.

Under the amnesty schemes announced by different countries, he said, people had so far disclosed $360 billion worth of assets, but they brought back only $10 billion to their respective countries.

There is a global campaign against money laundering and tax evasion that has made it increasingly difficult for the tax dodgers to keep their assets in offshore havens.

Replying to a question, the special assistant said the government had not yet decided whether the amnesty scheme would be part of the budget 2018-19, which would be unveiled on April 27, or a separate law would be introduced in parliament.

“Our thinking is that the scheme could be incorporated into the budget, but legal issues may arise if the government tries to amend various laws through the Finance Bill. In case of the Finance Bill, the Senate does not have the voting right,” he added.

In order to ensure secrecy and impunity for those who avail themselves of the scheme, the government will have to amend various laws.

These include the National Accountability Ordinance 1999, Foreign Exchange Regulations Act 1947, Income Tax Ordinance 2001, Prohibition of Benami Transactions Act 2017, Federal Investigation Agency Act 1974 and Companies Act 2017.

Khan said the government would give exemption except from prosecution under the Anti-Money Laundering Act 2010, Anti-Terrorism Act and Narcotics Control Act.

Both the political leadership and the bureaucrats are unanimous on offering a one-time offshore tax amnesty scheme to all Pakistanis by asking them to get their hidden foreign assets legalised at low tax rates.

Pakistan has long been facing the challenge of bringing back assets that its citizens have kept abroad by exploiting legal lacunas.

Khan said the government could offer the scheme for two to six months. There was also a proposal to make domestic assets part of the upcoming scheme as the business community demanded a domestic scheme, he added.

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Tax collection

The special assistant said the FBR could aim to collect Rs4.450 trillion in revenues in the next fiscal year 2018-19. He pointed out that a 10% depreciation of the rupee in three months would provide a big boost to revenue collection that would help the FBR to achieve next year’s target.

To a question about the possibility of achieving Rs4.013-trillion tax collection target this year, Khan said the priority was to double the collection over five years and the magic number was Rs3.9 trillion.

In 2013, when the PML-N government came to power, the revenue collection was Rs1.946 trillion.

The PM aide said the government would only clear Rs50 billion worth of sales tax refund claims and that too in three instalments. “It is not possible to clear all the outstanding sales tax refund claims of Rs128 billion. Income tax refunds will not be cleared during the current phase,” Khan added.

Published in The Express Tribune, March 21st, 2018.

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Read more: Amnesty scheme , Business , FBR
 
Peanutsssss!!!

We want our money back from corrupt politicians like nawaz shreef who used his position in the government to launder the tax payer money out of the country and also to expand his business through systematic corruption by passing the laws that favoured him over his rivals.
 
And what about $200 billions Pakistan's looted money in swiss banks, panama or anywhere else ?
Who is going to bell the cat? The very ppl who have done that are the ones who are in power. They are not about to axe their own foot.
 
Can you imagine how much money is stacked abroad. Money that belongs to the people of Pakistan. This is a crime of unimaginable magnitude. This money could be used to repay debt, invest in health and education.
 
there are about 450+ money launderer, offshores holders , just list all the name and publish that list publicaly. people of pakistan bell the ring to all. :angry:
ppl of Pakistan will bring it back? It's the ppl of Pakistan that keep bringing these goons to power knowing full well that these goons are going to loot the nation with both hands. U will find many "jiyala" type ppl here on PDF and in Pak...these ppl are all staunch supporters of either one party or another. There's ppl who vote on the basis of whether they are Punjabi or Pukhtoon or whatever. There are ppl who vote for a certain politician bcuz he got the road built in front of their house right before the elections. If the ppl were serious about this then no doubt all this money can be brought back and justice can be served to these goons...but in order for that to happen u need a public that keeps their eyes open and thinks as a collective. For example we just saw the many different corruption scandals of PPP and Zardari before Nawaz gov...we saw how the Supreme Court couldn't do anything against him despite trying...and NAB was all but silent(bcuz they were probably paid off). After witnessing this the ppl should've boycotted PPP entirely...ENTIRELY.

Yet there are still some of them in various positions...and I hope I'm wrong but I think this next election the votes will be divided between PTI and PML-N in such a way that neither maybe able to form a government on its own...and once that happens they will have to make a coalition gov with the likes of PPP.

There should be one simple rule ppl should follow...once a politician/political party has been given power and they do these kinds of shenanigans...just simply never vote for them again...ever...even if they turn into angels...punish them by never again voting for them.
 
Big lie. No money will come back which are invested in properties outside Pakistan or in other businesses. No politician will gonna bring back money back as that will label him corrupt. Only a few businessmen will bring money back which they transfer outside country using hawala and now they are seeing good business environment so they may use it to expand business in-house. some of the money will go back to make wealth using corruption again.
This kind of crazy ideas generates more divide between rich and poor.
 
Waste of time, not even $5 will be brought back. If Pakistan was serious about accountability then start doing what MBS did in SA to everyone who have assets abroad. You can start with Nawaz Sharif.
 
Seeing From previous such schemes it is clear looters are winners.
Bring back looted money..pay peanuts in tax and make it white.
Pkr is purposely crashed before the scheme..so get maximum out of the declared amount.
Pakistan should ban declaration of all amounts by politicians bureaucats and their family members..then see how much comes back.

This scheme is for criminals not the country
 
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