In a significant move to combat Benami transactions, the Federal Board of Revenue (FBR) has announced the establishment of three dedicated zones in major cities across the country.
This initiative empowers commissioners and deputy/assistant commissioners to take decisive actions against Benami transactions, a practice where property is held by one person for the benefit of another, often to conceal the true ownership.
A notification from the Inland Revenue Operations Wing, FBR, outlined the creation of three distinct zones in Islamabad, Lahore, and Karachi. The commissioners in these zones have been granted authority to initiate and approve cases related to Benami transactions within their respective jurisdictions.
• The Commissioner Inland Revenue (Benami Zone-I) Islamabad will serve as the approving authority for cases within the province of Khyber Pakhtunkhwa and Islamabad Capital Territory.
• The Commissioner Inland Revenue (Benami Zone-II) Lahore has been entrusted with the authority to approve cases within the jurisdiction of the province of Punjab.
• Commissioner Inland Revenue (Benami Zone-III) Karachi has been designated as the approving authority for cases within the provinces of Sindh and Balochistan.
In addition to these approving authorities, the FBR has empowered deputy commissioners of the three zones as initiating officers under Section 2(1)(3) of the Benami Transactions (Prohibition) Act, 2017. This provision grants them the authority to initiate cases against suspected Benami transactions.
Furthermore, assistant commissioners in the designated zones have been appointed as administrators under Section 2(1)(2) of the Benami Transactions (Prohibition) Act, 2017. This role positions them as key figures responsible for administering and overseeing matters related to Benami transactions within their respective jurisdictions.
Benami transactions have long been a challenge for tax authorities, often being used to conceal wealth and evade taxes. The creation of these dedicated zones and the empowerment of officials is a strategic move by the FBR to intensify efforts against such transactions and bring transparency to property ownership.
This development aligns with the government’s broader agenda to curb financial irregularities, enhance tax compliance, and foster a more transparent and accountable financial system. The FBR’s proactive approach in establishing these zones demonstrates a commitment to tackling economic malpractices and reinforcing the rule of law in the realm of property transactions. The effectiveness of these measures will likely unfold in the coming months as the FBR intensifies its focus on combating Benami transactions across the country.
