Opportunity given to legalise untaxed income, not black money: NBR

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Doulot Akter Mala
The National Board of Revenue (NBR) has clarified its stand relating to legalisation of untaxed money saying the provision is not meant for black money.
"It is not a blanket unconditional move to legalise the illegally earned money. The opportunity has been given to untaxed income," the NBR said in a clarification of the Statuary Regulatory Order (SRO) issued on June 4.
In the SRO, the NBR has offered an opportunity to declare undisclosed income by paying 5.0 per cent in addition to normal rate of tax over the period of the next two months.
The taxmen will not be asked the source of money to the tax payer while declaring the untaxed money in the next two months.
The government has offered the opportunity only for those who have failed to file their tax returns for different reason.
While talking to the FE, NBR Chairman Badiur Rahman said: "We are receiving quarries from the tax payers, who are seeking clarification about the SRO, especially about the term -- dishonest."
The board is giving replies to them, but it is yet to estimate the amount of money disclosed so far, he said.
"I will receive a data on Thursday as the board is too busy with the budgetary work," he added.
The NBR in the clarification said a section of people is worried about their large amount of untaxed income earned through legal means.
The government has offered the opportunity for bringing the untaxed money into the formal economy, the NBR said in its clarification.
Those taxpayers with Tax Identification Number (TIN), who are yet to complete tax assessment in 2006-07, will be allowed to submit revised tax returns deducting the tax paid earlier.
Such taxpayers could pay tax on the undisclosed money without paying 5.0 per cent penalty over the next two months.
But, if those taxpayers have undisclosed money of the previous five fiscals, they have to pay 5.0 per cent penalty to file their tax return.
The taxpayers, who have already completed the tax assessment of the current fiscal, have to pay 5.0 per cent penalty to disclose their untaxed income.
If the taxpayers resolved the tax related cases in fiscal 2006-07, they will be able to pay tax of the last five years, including the current fiscal, according to the clarification.
"The government will not take any punitive action against those taxpayers who will file revised tax return as per the SRO," it said.