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Tax amnesty scheme for new investors announced

Tax amnesty scheme for new investors announced

ISLAMABAD: Federal Board of Revenue has notified a tax incentive package for new investors under which the source of investment would not be asked if it is made on or after the 1st day of January, 2014, and commercial production commences on or before the 30th day of June, 2016 in Greenfield industrial projects.

Through an SRO 1065(I)/2013, the FBR has notified immunity from penalties, default surcharge and audit for dormant taxpayers, non-NTN holders and NTN holders not filing their income tax returns.

The concessions shall not apply to investment made in arms and ammunition, explosives, fertilisers, sugar, cigarettes, aerated beverages, cement, textile spinning units, flour mills, vegetable ghee and cooking oil manufacturing.

The term Greenfield industrial undertaking shall include expansion projects for the purpose of this clause. The immunity shall not be available to proceeds of crime relating to offences under Control of Narcotics Substances Act, 1997; Anti Terrorism Act, 1997 and Anti-Money Laundering Act, 2010.

As per the SRO, the immunity from penalties, default surcharge and audit would be available to an individual, holding an NTN who files a return by February 28, 2014, of the tax years from 2008 to 2012, for which returns have not been field. Provided that for each of the tax year, a minimum tax of Rs 20,000 on the basis of taxable income is paid by the taxpayer. The taxpayer shall not be entitled to claim any adjustment of withholding tax collected or deducted under the Ordinance.

The immunity from penalties, default surcharge and audit would be available to an individual, if the individual files return or returns, as prescribed for this clause, by February 28, 2014 for any or all of the tax years from 2008 to 2012 and has not filed any return for the last five years; is not an NTN holder as on November 28, 2013; declare taxable income for the year which exceeds the amount on the basis of which, tax payable is Rs 25,000 or more and has paid the tax on the basis of taxable income declared in the return or returns. Provided that concession under this clause shall only apply for the tax year or years, for which the returns have been filed and for equal number of succeeding consecutive tax years, if tax paid for the succeeding tax years is at least equal to tax paid for tax year 2012. The taxpayers shall not be entitled to claim any adjustment of withholding tax under the Ordinance, collected or deducted during a tax year, for which a return is filed. The due date of filing of return for tax year 2013, in respect of individuals availing concessions shall be February 28, 2014.