The Federal Board of Revenue (FBR) is employing a comprehensive approach to enhance tax compliance by obtaining crucial information on buyers and sellers of immovable properties through provincial registrars.
FBR officials revealed on Friday that they are diligently monitoring all transactions related to the sale and purchase of immovable properties, with a particular focus on identifying individuals possessing taxable income but currently evading the tax net.
The details of buyers and sellers involved in these property transactions are being meticulously recorded and stored in a central database, providing tax authorities with a powerful tool to identify potential tax evaders. Officials have warned that individuals with taxable income, or those who own or have purchased immovable properties exceeding 500 square yards or flats measuring 1500 square feet, failing to comply with mandatory asset and income declaration requirements will face stringent legal actions.
The FBR officials clarified that according to existing tax laws, any person responsible for registering or attesting the transfer or right to use immovable property is mandated to provide information to the FBR if the property meets one of the following criteria:
(a) Measures at least 500 square yards or one kanal, whichever is less; (b) Is a residential flat with a covered area measuring 1500 square feet and above; (c) Is a commercial property of any size.
The provided information must include essential details such as the name and address of the buyer, National Tax Number (NTN) or Computerized National Identity Card (CNIC) information, the name and address of the seller, and corresponding NTN or CNIC details. Additionally, full particulars and the location of the property, the property’s value as per the deed of registration, and the date of registration must also be provided.
This proactive measure by the FBR aims to curb tax evasion, ensuring that individuals with substantial incomes or valuable properties contribute their fair share to the national exchequer. By streamlining the information-gathering process and leveraging a centralized database, tax authorities are better equipped to identify and take action against those attempting to circumvent tax obligations.
The implementation of these stringent measures underscores the government’s commitment to creating a transparent and accountable tax system, promoting fairness and equity in the distribution of tax burdens. As the FBR continues to strengthen its monitoring mechanisms, it sends a clear message to tax evaders that evasion will not go unnoticed, and legal consequences await those who attempt to undermine the nation’s fiscal responsibilities.
