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Safe Passage for Corrupt,

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   Waseem®
Friday, July 22, 2016 08:28 AM 
Reply: >
The point is when you do fraud, do it in billions, so that you can buy any government official.
Abdal® replied on Friday, July 22, 2016 09:00 AM 

Fully agreed. Amnesty at 4-5% with no past record checking when the applicable tax rate is around 35% would be discouraging honesty and law abidance in the society.
Real Estate is best replied on Friday, July 22, 2016 09:17 AM 

kisi taraf tou khush ho jaya karo yaar tax laga tou rona daala ab agar mamlaat solve ho rahay hain tou phir rona ratta
AHMAD HASSAN® replied on Friday, July 22, 2016 09:20 AM 

Both Stakeholders & FBR teams are working separately to propose new market values of 21 cities properties. Really very hard job if go for actual. A general understanding is that current DC rates will be increased 20% and rest will remain same. If this is correct then business will be restored as usual. A real picture will come after 27th July as FBR figures could be different and become point of conflicts. Apart from that we should really appreciate GOVT team as they didn't try to become showstopper yet, although they crashed business so far. Lesson learned for overseas Pakistanies is that don't let convert our white money to black money. Try to become filer and start to declare actual purchase & sell price because this relief is temporarily. In coming years new amendments will be in place.
Kureshi® replied on Friday, July 22, 2016 10:14 AM 

very valid points,Habib.


Waseem sb, Not all money termed black is bad. for 90 % users its the bad system that turned their hard earned white money to black. Any body who has changed location of plot by flipping property in past 5 years ( i am sure thre are many on this forum) have become a victim of turning their white money to black due to less knowledge of filing property transactions in their tax returns and intehrently wrong system of recording transactions based on CVT and stamp duty on DC rates.

while it is a karwa ghoont but its a big step that govt and dealer association is taking to fix this big mess which no one has ever dared addressing.

Lets hope and pray that things get settled in an amicable way and end up being beneficial for the country and countrymen.
Newbie replied on Friday, July 22, 2016 10:45 AM 

Question is for someone who is not a filer, lives abroad i.e. non resident.. if lets say he has purchased a property last year, then how government will collect tax from him ? since he is a non-filer so not declaring assets, will he have to pay this tax at the point of when he sell in future or will he get some kind of notice from FBR to his abroad address ?
Newbie replied on Friday, July 22, 2016 11:50 AM 

Anyone ?
Asad-Ali replied on Friday, July 22, 2016 12:20 PM 

@Newbie, you would be asked to pay Tax at the time when you sell this.
Newbie replied on Friday, July 22, 2016 12:35 PM 

Thanks Asad-Ali. It is still confusing :

Does it mean, a filer have to declare the asset purchased in last 5 years and pay the tax immediately.

And the non-filer will only pay when he sell, and do not need to bother until he decide to sell.. And inface, if he sell after 5 years, then no tax.

Its difficult for me to believe that non-filer is at an advantage.
Pleaae explain ?
Asad-Ali replied on Friday, July 22, 2016 01:42 PM 

no matter you are filer or non-filer, no need to pay TAX until you sell your plot. And if you are filer, you can declare its actual value you purchased and there is no new TAX on old transactions. Taxes apply only on future transactions
Newbie replied on Friday, July 22, 2016 01:55 PM 

@Asad-Ali - thanks
But then what is the scope of amnesty that is being planned, and is it not for past transactions, where to avail amnesty u have to pay tax upfront within 2-3 months of amnesty period ???
Jameel Mughal® replied on Friday, July 22, 2016 05:23 PM 

@New bie these issues have Been discussed in previous post, all assets have to be declared no matter 100 ys old. FBR will only question sources of Funds in last 5 years prchases.
@ asad Ali don't Confuse gain Tax with this Filing
As 2015 law every one should File Income Tax though payable is zero, You have to declare all assets and to my understanding being overseas was no exemption. Now if some earns overseas and have 5 Cror Property in Pakistan and transferred all money by legal means should not worry, At this time there is no wealth Tax in Pakistan. So no matter you hold 100 Cror Property you are not Liable.
Property Tax is different entity and You are already paying. A different dep Called Excise and Taxation is responsible for that.
However all your money will be white once declared only catch is in Future if some new Tax Like "wealth Tax" is Imposed then you may have to pay.
This Law was widely not practiced in Pakistan and is still not being practiced. Even big politicians and businessmen and Govt officials [Corrupt or Not Corrupt] are not declaring personal assets.
The big question is should overseas take advantage of this point and declare assets or still wait. I personally will wait for Fair market price Law and discuss with some Tax expert at later stage.
N.B wealth Tax was in Practice in Pakistan till Late 1990s and after certain Bracket was 0.5 and then 1.0 Annually, later it was abolished by Last Nawaz Sherif Govt Before Musharraf. Wealth Tax is imposed on your net worth and not in practice in 90% Countries of the world. For reference see the Countries where wealth tax is in practice.
Newbie replied on Saturday, July 23, 2016 04:46 PM 

@Jamil bro. Thank you. If as a non-resident and a non-filer I do not want to become a filer, can it be done legally or do I must need to become a filer and declare all assets. I have purchased few properties in last 5 years in Pakistan and all of them are in good profit but have not sold any of them so far and hence nothing to declare for cgt reasons.
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