Islamabad, Oct 10: Government Considers Purchasing Properties Declared Below Market Value in Tax Returns. Taxpayers whose wealth declaration were low, can expect the federal government to purchase properties owned by them.
Through different sources of media, it was learned that FBR seeks to implement a new feature for using which every taxpayer must declare the Fair Market Value of each assessment alongside the cost incurred in acquiring each assessment.
This will assist in establishing the real worth of the assets held by a person and represent the real enhancement of the asset of a taxpayer and, over and above this, this characteristic will give the government an opportunity to buy the asset at the declared price in so far as the actual price of the asset as declared by the taxpayer is considered low by the government, sources said.
This the officials said is because the taxpayers in the wealth statement deliberately understate the value of properties to avoid paying taxes.They added that FBR is planning to acquire the properties of those taxpayers who under stated the value of their assets in the wealth statement by changing the laws.
The government is cited to be considering proposing for a policy under which it can purchase properties that are declared at very low value in tax returns. It is hoped that it will reduce the incidence of tax avoidance and increase the clarity of the actual properties market.
This is one of the elements of the government’s activities aimed at overhauling the real estate market, prevalent and fair taxation, and non-distorted disclosure of transactions with real estate. It is expected to be featured in the future financial reforms of the country, which can be in the draft of the new policy or law designed to increase the country’s tax revenues and decrease the role of the shadow economy.
