PM Imran Khan Approves First Tax Amnesty Scheme
The First Tax Amnesty Scheme got its formal approval by Prime Minister Imran Khan on Monday after Finance Minister briefed PM Khan in the meeting.
In the meeting, Prime Minister Imran Khan gave the formal approval to apply the first Amnesty Scheme, and a summary was sent to the Federal cabinet for its final approval.
The Amnesty Scheme provides people an opportunity to legitimize their offshore and onshore-undeclared assets on minimal percentage rates.
The first Amnesty Scheme is expected to be implemented through the Presidential Ordinance on 15th April.
In the beginning, the scheme of assets declaration will be implemented for 45 days.
It is a limited-time opportunity for a specified group of taxpayers to pay a defined amount, in exchange for forgiveness of a tax liability (including interest and penalties) relating to a previous tax period or periods and without fear of criminal prosecution. It typically expires when some authority begins a tax investigation of the past-due tax. In some cases, legislation extending amnesty also imposes harsher penalties on those who are eligible for amnesty but do not take it. Tax amnesty is one of voluntary compliance strategies to increase tax base and tax revenue. Tax amnesty is different from other voluntary compliance strategies in part where tax amnesty usually waives the taxpayers’ tax liability.