June 18, 2019 (MLN): The Central Depository Company of Pakistan (CDC) has announced via notification that in order to facilitate declaration of securities held in the Central Depository System (CDS), direct transfer of Book-entry Securities will be allowed as Free Delivery Transaction through a specific reason code.
As per government’s initiative, under the Tax Amnesty Scheme 2019, eligible persons may declare undisclosed assets, sales and expenditure to the Federal Board of Revenue (FBR) by payment of tax at the rate prescribed. Such assets may also include securities held in the CDS.
The notification further adds that those intending to transfer securities under the scheme shall submit an undertaking and indemnity containing details of securities to be transferred, along with other essential documents.
In a case where foreign assets are shares of company incorporated in Pakistan held by declarant on repatriable basis, holder of securities and declarant shall also comply with procedures issued by the State Bank of Pakistan.
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