Government of Pakistan
Revenue Division
Central Board of Revenue
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C.No. 4(2)IT-Jud/97 Islamabad, March 1, 2000
Circular No. 04 of 2000
(Income Tax)
SUBJECT : TAX AMNESTY SCHEME, 2000
In exercise of the powers vested in the Central Board of Revenue under section 59D of the Income
Tax Ordinance, 1979, the following Scheme for the payment of tax in respect of undisclosed income is made.-
1. TITLE AND SCOPE OF THE SCHEME
(1) This Scheme shall be called Tax Amnesty Scheme, 2000.
(2) The Scheme shall apply to all assessees whether existing or new except the cases where proceedings are pending under the National Accountability Bureau Ordinance, 1999 (XVIII of 1999).
(3) The Scheme shall apply to undisclosed income of any income year or years ended on or before 30th day of June, 1999.
2. MEANING OF "UNDISCLOSED INCOME"
For the purposes of this Scheme undisclosed income means any income (including any investment to be deemed as income under section 13 or any other deemed income) which was chargeable to tax but could not be so charged under the Income Tax Ordinance, 1979, for any income year or years ended on or before 30th day of June, 1999.
3. CHARGE OF TAX ON UNDISCLOSED INCOM
The tax on undisclosed income shall be charged at the rate of ten per cent.
4. DECLARATION OF UNDISCLOSED INCOME
The declaration of undisclosed income shall be in the form given in the annex to the Scheme and shall be submitted by 30th day of April, 2000.
5. PAYMENT OF TAX ON UNDISCLOSED INCOME
The tax payable on the undisclosed income shall be paid by the declarant on or before furnishing the declaration and it shall be accompanied by proof thereof.
6. PROCEDURE FOR FILING OF DECLARATION
(1) The declaration of undisclosed income shall be delivered to the concerned Deputy Commissioner of Income Tax who, on receipt of such declaration, shall give an acknowledgement receipt.
(2) Undisclosed income may be declared either in consolidated form for all years for which declaration is made or separately for each year on a single declaration form.
7. INCORPORATION OF UNDISCLOSED INCOME IN BOOKS OF ACCOUNTS
Where the declarant has paid tax on his undisclosed income in accordance with the Scheme, he shall be entitled to incorporate in his books of accounts such undisclosed income in tangible form.
8. IMMUNITY
(1) Where a person has paid tax on his undisclosed income in accordance with the Scheme, he shall not be liable to any further tax, charge, levy, penalty or prosecution in respect of such income under the Income Tax Ordinance, 1979.
(2) The undisclosed assets declared in accordance with the scheme and on which tax has been paid would be exempt from wealth tax under the Wealth Tax Act, 1963, for any assessment year commencing on or before the first day of July, 1999, and for five assessment years next following.
(a) The filing of declaration for any year or years shall not affect the pending assessments/ re-assessments for that/ those years. All such assessments or re-assessments shall be finalized as provided in the Income Tax Ordinance, 1979 or Wealth Tax Act, 1963. No set off or credit for the undisclosed income declared under the Scheme shall be given against the income assessed on such assessment/ re-assessment. However, no addition u/s 13 shall be made in respect of such undisclosed asset as is declared under the Scheme for the relevant year for which assessment/ re-assessment is made, provided that the value of such asset is according to the provisions of this Scheme and the tax thereon has been paid.
(b) The pending appeals/ revision petitions will be heard and decided in the normal course.
10. FINALITY OF PROCEEDINGS UNDER THE SCHEME
(1) All declarations filed under the Scheme shall be subjected to preliminary examination.
(2) Where a declaration in respect of undisclosed income has been properly made and the tax due on such income has been fully paid, such declaration shall be accepted by Deputy Commissioner of Income Tax concerned without any further proceedings and the declarant shall be informed accordingly.
(3) Where any deficiency or any mistake in calculation of tax or any other deficiency or mistake is noticed, a show cause notice with the prior approval of Commissioner of Income Tax, shall be issued and served upon the declarant requiring him to meet the deficiency and explain the mistake or omission within 30 days of the service of the said notice. If the said deficiency or mistake is rectified within the due date the declaration shall be accepted and the declarant should be informed accordingly.
(4) In case the declarant does not respond to the notice issued under para 10(3) of the Scheme or does not revise the declaration, such declaration shall be rejected with the approval of the Commissioner of Income Tax and the provisions of paras 7 and 8 of the Scheme shall not apply.
(5) Where it is subsequently discovered that the declaration so made was not true and correct or the particulars of income or assets were inaccurate, the acceptance of such declaration shall be cancelled with prior approval of Commissioner of Income Tax/ Wealth Tax concerned provided that no such order of cancellation shall be made without giving an opportunity of being heard to the declarant. However, no order of cancellation shall be made after the 30th day of June, 2005.
(6) Where the declarant claims depreciation allowance in respect of Plant and Machinery for any assessment year prior to the assessment year commencing on or before the 1st day of July, 2000, his declaration for the relevant assessment year shall be cancelled by the DCIT with the prior approval of the CIT and all provisions of the Income Tax Ordinance, 1979 or Wealth Tax Act, 1963 shall apply accordingly.
11. CONSEQUENCES OF FILING OF UNTRUE OR INCORRECT
DECLARATION
Where a declaration is rejected or its acceptance is cancelled in accordance with the provisions of Para 10 of the Scheme, the immunity granted under Para 8 of the Scheme shall cease to exist and all the provisions of Income Tax Ordinance, 1979, and Wealth Tax Act, 1963, shall apply accordingly.
12. VALUATION OF ASSETS
For the purpose of this Scheme, the valuation of undisclosed assets created out of undisclosed income shall be made in the following manner. -
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Residential Properties |
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Plots and open lands
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Actual cost of acquisition or value specified for the purposes of stamp duty applicable on 30th June of the relevant income year, whichever is higher. Actual cost of construction or at the rate of Rs. 300 per Sq.ft. whichever is higher. Actual cost of acquisition or value specified for the purposes of stamp duty applicable on 30th June of the relevant income year, whichever is higher. |
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Commercial Properties |
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Plots and open lands
Investment in Securities and Capital Instruments (i.e., National Saving Schemes, Postal Certificates, Bonds and other Securities etc).
Cash and Prize Bonds
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Actual cost of acquisition or value specified for the purposes of stamp duty applicable on 30th June of the relevant income year, whichever is higher. Actual cost of construction or at the rate of Rs. 300 per Sq.ft. whichever is higher. As per Wealth Tax Rules applicable on 30th June of the relevant year. As per Wealth Tax Rules applicable on 30th June of the relevant year. As per Wealth Tax Rules applicable to the relevant year.
The face value.
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Motor Vehicles |
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(a) Imported motor vehicles.
(c) Motor vehicles specified in clauses (a) and (b); on the valuation date following the valuation dates in which the vehicle was first assessable in the hands of the assessee.
Jewellery (Other than gold)
Stock in trade
Accounts receivable
Plant and machinery
Other assets |
CIF value plus the amount of all charges, customs-duty, sales tax, levies, octroi, fees and other duties and taxes leviable thereon and the costs incurred till their registration. The price paid by the purchaser, including the amount of all charges, customs duty, sales tax and other taxes, levies, octroi, fees and all other duties and taxes leviable thereon and the costs incurred till their registration.
The value computed in the manner specified in clause (a) or clause (b), as the case may be, as reduced by a sum equal to 10% of the said value for each successive year, up to a maximum of five years. The original cost of the vehicle determined in the manner specified in clause (a) or clause (b) as the case may be, as reduced by an amount equal to 10% for every year following the year in which it was imported or purchased from a manufacturer. Provided that in no case shall the value be determined at an amount less than fifty per cent of the value determined in aforesaid manner.
Market rate as on 30.06.99
Actual cost of acquisition.
Actual on 30th June of the relevant income year.
Actual cost of acquisition on 30th day of June of the relevant income year with proof of purchase.
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In respect of Plant and Machinery declared under this Scheme, no depreciation allowances shall be allowed in respect of any assessment year commencing on or before the 1st day of July, 1999. The WDV of such plant and machinery as on 30th day of June, 2000 shall be worked out as if the depreciation allowances had been allowed upto the assessment year commencing on the 1st day of July, 1999, under the provisions of the Third Schedule to the Income Tax Ordinance, 1979.
14. FORM OF DECLARATION OF UNDISCLOSED INCOME
The declaration of undisclosed income required to be furnished under section 59D shall be in the form as per annexure and shall be verified in the manner and accompanied by the documents as specified in the Scheme.
Encl: As above
Ali Husnain
Secretary (IT-judicial)
Annexure
FORM OF DECLARATION OF UNDISCLOSED INCOME
1.NTN __________________________________
2.Name and Style of Business __________________________________
3.Status
(Tick whichever is applicable)
4.Name of the Proprietor/ Member of AOP/ Managing Partner/Chief Executive Officer of a company (in block letters)
_________________________________________________________________________
5.NIC No __________________________________
6.Business Address __________________________________
7.Residential Address __________________________________
8.Phone Office _____________ Fax No ______________
9.Phone residential _____________
PART-I
Particulars of undisclosed income or assets in each assessment year or in consolidated form (including cash, prize bonds, securities, capital instruments, bank deposits, bullion, jewellery, motor vehicles, stocks, shares, immovable properties, undisclosed expenditure, plant and machinery, stock and trade, accounts receivable or any other asset).
INCOME
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Income Year in which income earned |
Assessment Year |
Undisclosed income (Amount/Value as per Part-II) |
Tax paid |
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Total: |
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PART-II
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Description of property |
Name of Bank/ Account No. |
Relevant income year |
Amount |
Value as per Rule No. 12 |
Tax paid |
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Total: |
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Description of property |
Weight |
Income year in which acquired |
Value as per Rule No. 12 |
Tax paid |
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Total: |
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Total: |
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(C) MOVEABLE PROPERTY
(Plant and machinery/stocks in Trade/any other assets).|
Description of property |
Income year in which acquired |
Actual cost/Value as per Rule 12. |
Tax paid |
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Total: |
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(D) MOVEABLE PROPERTY
(Other than Assets in A, B & C)|
Description of property |
Make and types |
Registration No. Wherever applicable) |
Income year in which acquired |
Value as per Rule No. 12 |
Tax paid |
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Total: |
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E) IMMOVEABLE PROPERTY
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Description of property |
Location and Identification No. of property |
Income year in which acquired |
Commercial/ residential |
Size of plot etc |
Covered area |
Valuation as per Rule 12 of the Scheme |
Tax paid |
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Total: |
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(F) EXPENDITURES
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Nature of expense |
Income year in which expenditure incurred. |
Amount. |
Tax paid |
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Total: |
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Grand Total (Part-II
A to F)_______________________________________Total amount of declaration_______________________________________________________________
Tax payable @ 10% ________________________________________________________________
Tax paid vide challan/pay order
/demand draft No.-----date------
of ------Bank-------Branch-------at___________________________
Part-III
VERIFICATION
I, the undersigned, solemnly declare that to the best of my knowledge and belief-
(a) the information given in this declaration is correct and complete;
(b) the amount of undisclosed income and assets are truly declared.
I, further declare that I am competent to make this declaration and verify it in my capacity as Proprietor /Member of AOP/ Partner of Firm/Chief Executive of Company of __________________________.
Signature___________
Name ___________
Date __________
Note
1. The verification should be signed -
(a) in the case of individual by the individual himself;
(b) in the case of firm by Managing Partner;
(c) in the case of association of persons, by the member of the association; and
(d) in the case of HUF by the Manager/ Karta.
(e) in the case of Company, by the Chief Executive Officer.
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ACKNOWLEDGEMENT RECEIPT
NTN __________________________ NIC No _____________________________
Name of declarant ______________________________________________________
The declaration of undisclosed income along with challan/ pay order/ bank draft of Rs. ___________ is hereby, received.
Signature of DCIT _________________
Name of DCIT _________________
Officer's Code No _________________
Official Seal