In a further clarification to allowing investment of undisclosed money
in the stock market, a government order says money earned through
criminal acts will not be allowed.
A statutory regulatory order of the National Board of Revenue, issued on Sunday, says that if the money was earned through criminal acts outlined in other laws, then those funds will not be accorded the same privilege as that of undisclosed money.
The order said the tax on untaxed income from shares of publicly listed companies and from mutual fund units will be reduced to 10 percent when invested by all except public companies, though with certain conditions.
One of the conditions lays down that the investment must be announced within July 15 through attached forms with the tax deputy commissioner concerned.
With the form, the copy of pay-order supporting the tax payment, portfolio statement in support of the investment and copy of the beneficiary owner's account ledger must be attached.
The rebate will not apply to crimes committed under other laws, and the investment cannot be withdrawn or transferred before June 30, 2013.
Also, beyond the rebate are the tax defaults discovered and taken action against June 30, 2011.
The finance minister made an announcement allowing undisclosed income into the stock market right before passing the budget, at the urging of the prime minister and different interests, though he did not mention anything of the sort in his budget speech.
Later, under fire from the Asia Pacific Group on Money Laundering, the government released a gazette saying the source of income must be shown.
Two months ago, the revenue board, instructed by the prime minister, said it would ask no questions about stock market investments.
A statutory regulatory order of the National Board of Revenue, issued on Sunday, says that if the money was earned through criminal acts outlined in other laws, then those funds will not be accorded the same privilege as that of undisclosed money.
The order said the tax on untaxed income from shares of publicly listed companies and from mutual fund units will be reduced to 10 percent when invested by all except public companies, though with certain conditions.
One of the conditions lays down that the investment must be announced within July 15 through attached forms with the tax deputy commissioner concerned.
With the form, the copy of pay-order supporting the tax payment, portfolio statement in support of the investment and copy of the beneficiary owner's account ledger must be attached.
The rebate will not apply to crimes committed under other laws, and the investment cannot be withdrawn or transferred before June 30, 2013.
Also, beyond the rebate are the tax defaults discovered and taken action against June 30, 2011.
The finance minister made an announcement allowing undisclosed income into the stock market right before passing the budget, at the urging of the prime minister and different interests, though he did not mention anything of the sort in his budget speech.
Later, under fire from the Asia Pacific Group on Money Laundering, the government released a gazette saying the source of income must be shown.
Two months ago, the revenue board, instructed by the prime minister, said it would ask no questions about stock market investments.
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