Representatives from private sector today suggested the government to introduce a provision of voluntary disclosure of property to formalise economy and effective implementation of Anti Money Laundering Act.

Implementation of Anti Money Laundering Act is almost impossible unless the government formalise the economy, they said in an interaction oraganised by the sub-committee of Revenue Consultative Committee under Finance Ministry.

However, the Department of Money Laundering Investigation said that the voluntary disclosure of property is entirely a political issue. “Political decision is a must to announce disclosure policy,” said director general at the department Mukti Narayan Paudel.

“However, the department, legally, cannot exempt any earnings, even after voluntary disclosure of property, since it will not be justifiable to provide chance of converting black money into white.”

Businessmen in Birgunj, Bhairahawa and Nepalgunj had also demanded the voluntary disclosure of property scheme for once. “However, it is very tough since there is no base and method to exempt and measure whether properties are earned legally or not,” Poudel added.

Stating that people donot have their income source record, the government in its budget has mentioned to arrange some provision in the Property Tax Act that will help an individual, family or company to make a voluntary disclosure of all the fixed and movable properties.

“People can disclose their land, ornaments, and cash, deposits in banks and financial institutions, lending, investment in share and debentures and vehicles by paying minimal tax, the budget has stated. However, the budgetary provision is yet to be implemented.

But deputy managing director at the Department of Revenue Investigation Rajendra Sharma Laudari said that the sub-committee will prepare a separate report by the end of April to provide recommendations to the government. “The sub-committee will try to suggest more pragmatic solutions regarding voluntary disclosure of property,” he added.

source: The Himalayan Times,26 March 2012