KARACHI: The State Bank of Pakistan (SBP) on Wednesday promulgated Assets Declaration Ordinance 2019 to facilitate voluntary declaration of undisclosed assets.
The ordinance has been introduced with a view to provide for voluntary declaration of undisclosed assets, sales and expenditures, for the purposes of allowing the non-documented economy’s inclusion in the taxation system and encouraging a tax compliant culture.
As per the ordinance, the declaration made will be valid if the foreign currency held in Pakistan is deposited into declarant’s own foreign currency account at the time of disclosure and is retained in such account till June 30.
It is clarified that a declarant, including a non-filer, can deposit foreign currency in cash into his or her account. Similarly, the limit of deposits over $10,000 in a single day will not applicable under ADO.
However, banks while accepting such deposits will obtain a copy of the declaration filed with the Federal Board of Revenue (FBR) and accept the deposit only if the amount being deposited is equivalent to the one declared in the filing with tax body.
The banks will have to ensure confidentiality and secrecy of the information contained in the declaration submitted to them.
Published in Dawn, June 27th, 2019