The government has decided to declare tax evasion as money laundering.
Finance ministry sources said action would be initiated against those found involved in misusing amnesty schemes and investment schemes. The government has also issued directives to Financial Monitoring Unit (FMU) to devise guidelines for all the financial institutions and Federal Board of Revenue (FBR) to trace out those involved in misusing amnesty schemes and investment schemes.
The sources disclosed that tax evasion would be declared money laundering through amendment in anti-money laundering act and those found involved in tax evasion would be proceeded against under money laundering laws. However, it had been resolved with the IMF that Pakistan would identify those found involved in misusing amnesty schemes and investment schemes and prepare their lists till the amendment was introduced in the Pakistan Money Laundering Act, he added. The amended money laundering act will get approved from the parliament and the action will be taken against tax evaders under this amended act.
The sources said that investment scheme launched in November 2013 had remained a total failure and ineffective as only 450 non-filers and non-registered tax payers had furnished tax returns and minimal tax recoveries amounting to Rs 150 million have been made from them.