The Karachi Chamber of Commerce and Industry (KCCI) in its 2020/2021 budget proposals submitted to the FBR highlighted the provisions of the Income tax Ordinance, 2001 regarding access to bank accounts for tax purposes.
Under section 140 of the Income tax Ordinance, 2001 which deals with tax refunds for people who have deducted money on behalf of the taxpayer.
– (1) For the purpose of returning any tax payable by a taxpayer, the Commissioner, by notice, in writing, may require any person –
(a) a debtor or debtor to a taxpayer; either
(b) to manage or withhold money, or as a result of the taxpayer.
This provision and access to more information in bank accounts under other legal terms, would have little effect and would lead to a recession, the KCCI said.
We have said that there are many innovative ways that businesses are developing such as blockchain and home-based software.
Such provisions only apply to registered businesses while the entire unregistered sector is protected from these laws and from the means available.
Banks were also plagued by depreciation and exchange transactions. It is seen in the decline in economic activity, the room said.
It is best to act in accordance with anti-growth policies and anti-business laws. The ability to access the bank accounts of subscribers and release accounts must be provided by the Finance Bill 2020.
Access may only be limited to accounts of unregistered persons, but the account may be blocked or restricted.
The Commissioner should only be authorized to obtain information about the funds in the account and should be authorized to seek clarification on the nature of transactions and sources of funding. Such persons may be brought to tax relief.
The Karachi Chamber said the proposed amendments would provide assistance to enrollees and restore confidence in the banking system and would promote legitimate transactions.
Besides, it will help bring people who are not registered in the tax regime.
Promoting economic activity and growth. Increase bank deposits that can be used to finance the industry.
Source: PkRevenue
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