The Senate Standing Committee on Finance on Thursday authorised the Federal Board of Revenue’s (FBR) Inland Revenue authorities to review past income tax returns of owners of offshore income and assets beyond the five-year timeframe.
Under current law, the inquiry of records of owners of offshore assets and income is restricted or limited to a period of five years.
There will be no time limits on the investigation of these matters under the new law. There would be no time limit on the duration of the probe.
According to the new clause in the Finance Bill 2021, “Provided further that the time limit provided in this subsection shall not apply if the Commissioner determines, on the basis of reasons to be recorded in writing, that a person who failed to furnish his return has foreign income or owns foreign assets,” it added.
Under the Finance Bill 2021, the Inland Revenue Commissioners would now be empowered to scrutinise the income tax returns of owners of offshore assets or income for any prior year.