Rules to be introduced for confiscation of benami property
Federal government has already introduced Benami Transactions (Prohibition) Act 2017.
LAHORE (Dunya News)- Federal Board of Revenue (FBR) has on Tuesday decided to introduce rules to confiscate benami property, reported Roznama Dunya.
Tax and revenue watchdog has forwarded review draft to Law Division for the said purpose whereas new rules would be implemented after formal approval from the aforementioned department.
Federal government has already introduced Benami Transactions (Prohibition) Act 2017 which allows government to confiscate benami property. Sources privy to development told that federal govt has taken these measures in bid to curb terror financing and tax evasion.
It is pertinent here to mention that taxpayers hide taxable income through sophisticated methods. One such technique is to conduct business transactions through other persons (benamidars) who are not real beneficiaries of such transactions. It is extremely difficult for tax authorities to obtain information regarding benami transactions and then to link them with the actual beneficiaries to establish cases of tax evasion under the ordinance.
