Pak Govt. plans to regularize undeclared assets in offshore companies

The Pakistan Government is working on a package to regularise undeclared assets of citizens in offshore companies, as per tax officials.

According to a tax official, the government has asked them to come up with a plan to regularise offshore and undeclared holdings of potential taxpayers where the assets of equivalent value in Pakistan would be forfeited if assets held outside the country were not declared in addition to other severe penalties, reports the Dawn.

The proposed package introduces two laws for declaration of foreign assets and control of foreign exchange, out of which one law will provide legal cover to the people who have not declared their overseas income and assets and the other law proposes an amendment to the Foreign Exchange Regulation Act (FERA) to get hold of black money kept abroad.

According to reports, the Tax Administration Reforms Commission (TARC) had been developing the plan much before the Panama Papers leaks hit the headlines.

The package that is to be announced in August will be finalised and implemented by the Federal Board of Revenue, Securities and Exchange Commission of Pakistan (SECP) and State Bank of Pakistan.