Islamabad: According to press reports, the Senate Standing Committee on Finance accepted a proposal on Thursday to extend the time limit for serving tax notices in cases involving undeclared assets overseas and tax fraud through valuable gifts forever. The Federal Board of Revenue Operational Wing proposed the changes, which would be incorporated in the Finance Bill 2021-22 before it is approved by parliament.
The previous maximum time limit for serving notifications was five years, but it has since been removed. It is important to note, however, that tax notice can be avoided if the commissioner is satisfied with the individual’s reasons for not revealing overseas assets.
In terms of tax evasion through “suspicious” gifts, the FBR reported a transaction activity of PKR 170 billion in the previous year in the name of gifting relatives.
Additionally, through bilateral and multilateral agreements with the countries, adjustments were made to facilitate tax collection from those living outside the country.
Employees’ medical and provident funds will continue to be tax-exempt, according to the committee. Similarly, under the 2019 tax amnesty policy, the payment of the last fourth installment of taxes is given a three-month extension. In addition, the bill now mandates the filing of an FBR declaration for company accounts.