KARACHI: Federal Board of Revenue (FBR) has launched drive against high-valued transactions of immovable properties in order to unearth quantum of black money used for the purpose.
FBR sources said that the Broadening of Tax Base (BTB) unit of Regional Tax Office (RTO) – II Karachi launched action against around 2,000 persons who had acquired high valued immovable properties.
Those persons either failed to declare their assets before the tax authorities or misdeclared the amount used for the transactions.
The FBR sources said that the transactions had been identified through third party sources including banking transactions, where buyers made pay orders or demand draft for payment.
The real estate sector is one of the biggest parking lot for black economy in Pakistan. This is because the declared values of immovable properties are much lower than transactions values.
The FBR sources said that the BTB has expanded its coverage all around the mega city and detected huge number of transactions, where misdeclarations were found.
The sources further said that the BTB is taking action against 2,000 high valued transactions in the first phase. This will be further expanded on the basis of withholding tax data obtained from registrar of properties.
The sources said that huge mismatch was found in the properties of DHA, Gulshan e Iqbal, North Nazimabad, F B Area, Clifton, etc.
The sources further said that the BTB had conducted independent survey to determine the open market value and the payment history of past transactions of immovable properties.
The FBR sources also made it clear that immunity available under Section 236W was available to amounts to the extent of FBR valuations.
Under Section 236W of Income Tax Ordinance, 2001, the FBR will not ask any person making payment of withholding tax under this section to the extent values available under FBR valuation table.