FBR set to launch Benami law to trace black money

ISLAMABAD: Federal Board of Revenue (FBR) is set to make Benami Law operational with strict action to confiscate property if it was held by a person and payment made by another person.

 

 

The purpose of implementing the law is to detect prevalence of undocumented or black money in the system.

Senior FBR officials announced this three days ago. The Benami Transactions (Prohibition) Act, 2017 was passed by the Parliament in January 2017.

The act defines the benami transactions 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 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 in the name of any child or in the name of his brother and sister or lineal ascendant or descendant 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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