News sources said on December 28 that the Federal Board of Revenue (FBR) is thinking about putting out the names of high-value tax defaulters who did not pay Capital Value Tax (CVT) on foreign assets and tax on the deemed income.
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Under the new rule, the names of people who didn’t send in their taxes by the December 31 deadline will be made public. But care is being taken to make sure that those who don’t pay are given a chance to explain their legal situation before their names are made public.
The FBR announced that tax measures totaling about PKR 250 billion are being challenged. These include the super tax, the CVT on foreign assets, and the tax on the elite class’s deemed income. About 6,000 people with a lot of money have to pay the CVT on their foreign assets, and almost 4,000 people with a lot of money have to pay the super tax.
In the meantime, the Sindh High Court (SHC) has ruled that the super tax on high-earning individuals will not be in effect for Tax Year 2022, but only for Tax Years 2023 and later. The Balochistan High Court has sent notices to the FBR about whether or not Section 7E of the Income Tax Ordinance, 2001 (tax on deemed income) is legal.