Declaration of undisclosed money
Govt agencies won't ask questions about sources of fund
FE Report | Wednesday, 26 August 2020
The National Board of Revenue (NBR) chairman on Tuesday said the people concerned will be able to challenge in the court of law, if any government agency asks questions about the source while declaring their undisclosed money.
Aggrieved persons will be free to file any writ in the higher court, challenging the scrutiny of undisclosed income shown to the taxmen by any other organisation, said Abu Hena Md Rahmatul Muneem.
Responding to query of newsmen at the Electronic Fiscal Device (EFD) inauguration ceremony on the NBR premises, he said no entity will raise questions about the source of money of the holders of undisclosed money while declaring the same.
It will be unjust, if any entity raises question about the source of money, the NBR chairman further said.
"We have talked with the relevant entities and found them convinced in this regard."
He, however, said the facility will be applicable only in the case of the legally earned income.
In the budget for current fiscal year, 2020-21, the government offered an opportunity to legalise undisclosed income, cash, share, and bank deposit etc, by paying 10 per cent tax.
The NBR has not been getting any notable response to the facility, Mr Muneem noted.
"Some taxpayers are afraid of scrutiny of other entities. But I want to assure them that we have talked to other relevant entities in this regard."
The entities are convinced about not asking the holders of undisclosed money about the source, he added.
"The state has given an opportunity by framing a law. We have explained the spirit of the law to the entities. We have eliminated the scope of raising questions", he said.
He felt that the recent increase in the flow of funds to the capital market is an outcome of this opportunity.
Responding to a query whether the provision of the Finance Act can supersede the Anti-graft law, the NBR chairman said, "Yes, obviously, it has been made clear by the parliament."
He added that shortfall on revenue collection due to the COVID-19 pandemic will be covered up by realising the arrear revenue and taking some innovative steps. Besides, the NBR will focus on expanding the tax net, he added.