KARACHI: The Federal Board of Revenue has notified the procedure for taking tax credit of tax paid under Amnesty Acts 2018, in cases where declaration was not filed.
Under sections 5 and 6 of the Voluntary Declaration of Domestic Assets Act, 2018 and Foreign Assets (Declaration and Repatriation) Act, 2018 a declarant was required to make declaration to the Federal Board of Revenue (FBR) by the due date.
The due date was June 30, 2016 under section 6 of the aforesaid Acts. However, the aforesaid section section was amended through Presidential Ordinances namely the Voluntarily Declaration of Domestic Assets (Amendment) Ordinance, 2018 and the Foreign Assets Declaration and Repatriation Ordinance, 2018 and the due date was extended up July 01, 2018. Any person who paid tax under the aforesaid Acts but failed to make declaration within the due date under sections 5 and 6 of the aforesaid Acts to the FBR, cannot take credit of the assets against which tax was paid under the aforesaid Acts in their wealth statements under section 116(2) of the Income Tax Ordinance 2001 as they failed to avail the amnesty schemes under the aforesaid provisions of the Acts.
However, such persons can take credit of the said tax in their returns for the tax year 2018 by adjusting the same against its tax liability for the tax year 2018. In order to take credit of the aforesaid tax, they have to apply online on the web portal of FBR for correction of their CPRs as per procedure circulated by FBR.