Benami properties with known sources not to attract penal action

Benami properties with known sources not to attract penal action

KARACHI: A person having known source of income for a property and keeps in someone else name will not attract penal action under Benami Transaction laws, sources in Federal Board of Revenue (FBR) said.

The sources said that the Benami transactions law had created confusion among people and persons having white money and purchased properties in someone else names were also afraid of penal action.

The FBR officials said that Benami transactions has been defined under Section 8 of Benami Transaction (Prohibition) Act, 2007, as:

(A) A transaction or arrangement –

(a) Where a property is transferred to, or is held by, a person and the consideration for such property has been provided, or paid by, another person; and

(b) The property is held for the immediate or future benefit, direct or indirect, of the person who has provided the consideration, except when the property is held by –

(i) A person standing in a fiduciary capacity for the benefit of another person towards whom he stands in such capacity and includes a trustee, executer, partner, director of a company, agent or legal adviser, and any other person as may be notified by the Federal Government for this purpose; or

(ii) Any person being an individual in the name of his spouse or n the name of any child or in the name of his brother and sister or lineal ascendant or descendent and the individual appearing as joint owner in any document of such individual and the consideration for such property has been provided or paid out of known resources of income of the individual; or

(B) A transaction or arrangement in respect of a property carried out or made in a fictitious name; or

(C) A transaction or arrangement in respect of a property where the owner of the property is not aware of, or denies knowledge of, such ownership; or

(D) A transaction or arrangement in respect of a property where the person providing the consideration is not traceable or is fictitious.

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