The Finance Bill 2024 has granted the Commissioner of the Federal Board of Revenue (FBR) the authority to direct any individual to provide a statement of their wealth, including details of their foreign assets.
A tax expert explained that the Commissioner now has the power to require any individual to submit a wealth statement in a prescribed format, disclosing particulars of their assets and liabilities.
The Finance Bill 2024 has proposed that the wealth statement must include details of foreign assets held by the individual.
Additionally, the new Bill seeks to expand the scope of the best judgment assessment under section 121 of the Ordinance. This amendment will now encompass cases where an individual or entity is directed to file an income tax return following the discontinuation of their business operations.
The goal of this change is to ensure that tax obligations are accurately assessed and fulfilled, even in situations where a business has ceased to operate, thereby maintaining compliance and accountability within the tax system.
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The tax expert further explained that section 126A was introduced through the Tax Laws (Amendment) Act 2024 to provide pecuniary jurisdiction of appeals. The Finance Bill now provides an explanation that for the purpose of this section, the “value of assessment of tax matters” refers to the net increase in tax liability, and the “value of refund” means the net reduction in refund as a result of the order being challenged.
Under this section, the cases pending before the Commissioner Appeals were initially specified to be transferred to the Appellate Tribunal on and from June 16, 2024. However, this date has now been proposed to be substituted with September 16, 2024.
The extension is proposed due to the large number of cases to be transferred as a result of the monetary limit specified, and the inability to issue decisions before the original deadline of June 16, 2024.
