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Amnesty for tax evaders to join tax system

The Government in its maiden Budget yesterday laid down four devices by which it seeks to absorb money not declared for tax purposes into the formal economy.

Finance Minister K. N. Choksy while explaining that the Government did not intend placing a premium on tax evasion its objective however, was to give such persons an opportunity of coming into the tax system without fear of being penalised so that they would deploy this money into improving the economy.

Minister Choksy proposes introducing a Law in order to achieve this in the following manner:

(1) Such monies, if invested in specified areas of development of agriculture, industry or utility services by 31st March 2003 will not be taxed or penalised in any form for non-disclosure.

(2) Such monies, if invested in Treasury Bonds prior to 31st March, 2003 will have the same concessions as above, subject however, to the payment of a tax of 10 per cent on the value of investment income.

(3) Such monies, if in the form of immovable property or other assets can be declared and will be treated in the manner indicated in (1) above

(4) Such persons will become taxpayers on their incomes from and after April 2003 under the new Revenue Authority.

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