Karachi: An official of Federal Board of Revenue’s (FBR) Large Taxpayer Unit (LTU) said that it is compulsory for Pakistanis having offshore income and resources to declare their assets, and file their returns by September 30 – a news source reported.
He said FBR will launch proceedings against persons having offshore assets on the basis of available data. He added that any person who conceals foreign assets in their returns are punishable under the tax law.
Through an amendment to Finance Act 2018, Section 116A was added to Income Tax Ordinance, 2001, under which every Pakistani having foreign income above $10,000 or having foreign assets with a value of $100,000 had to furnish statements of foreign income and assets.
According to the FBR sources, the implementation of Section 116A would help the authorities get better results for exchange of information under Organisation for Economic Co-operation and Development (OECD).
Pakistan on September 14, 2016 entered into a multilateral treaty for the avoidance of double taxation; and for the exchange of information for the prevention of fiscal evasion or avoidance of taxes.
The treaty also included automatic exchange of information, with respect to taxes on income imposed under the ordinance.
