SECP introduced regularization scheme for companies facing default

Latest Politics & Pakistan Team TabloidPK June 16, 2024 0 Comments 65 Views

SECP introduced regularization scheme for companies facing default

The Securities and Exchange Commission of Pakistan (SECP) has introduced a regularization scheme for companies facing default. This scheme of SECP comes in response to non-filing tax returns of defaulting companies for several years.

This regularization scheme will be implemented from June 15, 2024, until September 15, 2024, by SECP. The companies will only pay the registration fee to file their overdue yearly returns, documents, and accounts following the scheme.

*SECP introduced Regularization Schemes to provide defaulting companies time to pay overdue*

It is significant to note that there will be no extra charges, penalties, or late fees for filing past-due taxes. The Companies Regularization Scheme will cover different kinds of companies, including private companies and SMCs (Small and Medium-Sized Companies).

It also includes foreign corporations, non-listed public companies, and non-profit organizations founded under Section 42 of the Companies Act. However, SECP has not introduced this regularization scheme for listed companies.

The scheme applies to the debts that companies did not pay by October 28, 2023. Companies have to file their tax returns physically so that they can file tax returns for multiple years.

*SECP will not charge extra fees for defaulting companies*

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SECP offers companies the permit to pay their dues without facing severe penalties. It aims to implement an effective tax system and reduce regulatory burden. You can visit the official SECP website www.secp.gov.pk. for additional details regarding this scheme.

This scheme comes just after the approval of the national budget three days ago. The Pakistani government suggested charging a record PKR 1.5 trillion in additional taxes following the new budget for 2024-25.

The Federal Board of Revenue (FBR) has also suggested the government ban foreign travel of Pakistanis who do not pay taxes. It has also blocked SIMs of non-filers on a massive level.