ISLAMABAD: The federal government has made the decision to examine the completion certificates that developers and builders who profited from the real estate industry’s amnesty programme under the PTI’s reign filed.
The Institute of Chartered Accountants in Pakistan (ICAP) conducted a quality control evaluation and found that the chartered accountancy companies were rated satisfactory. The Federal Board of Revenue (FBR) has been informed of these companies.
In addition to receiving tax breaks and discounts totaling billions of rupees, the amnesty scheme’s recipients were not questioned about their sources of income.
When contacted, a top FBR officer disclosed that the tax amnesty programme was implemented during the PTI’s reign for real estate developers and builders who finished projects within a given time frame.
To qualify for tax deductions and benefits under this amnesty scheme, developers and builders had to meet certain requirements. The requirements were that developers and builders had to have closed the selling process for a minimum of 40% of the plots, houses, or apartments, as well as sold at least 50% of the plots.
In a similar vein, for a minimum of fifty percent of residential and commercial developments, developers and builders have to get certificates indicating the completion of road infrastructure from the National Engineering Services Pakistan (Nespak).
Developers and builders were required to get compliance certifications in line with these eligibility requirements, and it was mandatory to confirm that these certificates came from chartered accountancy firms that ICAP had assessed as satisfactory following a quality control evaluation.
Officials stated that because the FBR failed to notify the audit companies that were deemed satisfactory by ICAP, the legal requirements for confirming the completion certificates of real estate sector investors benefiting from the amnesty policy were not met.
They claimed that the FBR has now certified the chartered accounting firms rated satisfactory by ICAP to authenticate the completion certificates in order to satisfy this legislative obligation.
After September 30, 2023, the companies who scored well in ICAP’s quality control evaluation will be qualified to vouch for the completion certificates that the developers and builders that profited from the amnesty programme filed.
Tax reduction would be extended to builders and developers whose credentials are validated. They won’t get tax relief, though, if the completion certificates can’t be validated or if they don’t fit the requirements.
They will also be assessed taxes and face legal repercussions in compliance with the law. Their sources of money can also be questioned.
