Asim Ahmed, Chairman of the Federal Board of Revenue (FBR), inaugurated the Secretariat of the Anti-Benami Adjudicating Authority in Islamabad on Wednesday. This milestone event is expected to enhance the efficiency and effectiveness of the Authority in combating benami transactions and illegal asset holdings.
(more…)Tag: Benami Law
-
Anti-Benami transactions rules notified as per law: FBR
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that Benami Transactions (Prohibition) Rules, 2019 has been issued in accordance with the law.
The FBR issued a rebuttal on a news item published in a daily on February 5, 2020 about the issuance of Benami Transactions (Prohibition) Rules, 2019.
FBR has explained that Benami Transactions (Prohibition) Rules, 2019 under Benami Transactions (Prohibition), Act, 2017 were notified through SRO. 326(l)/2019 dated 11th March, 2019 by Dr. Hamid Ateeq Sarwar, Additional Secretary (IRS/BS-21 Officer).
He is also holding the charge of Member (IR-Policy), FBR (HQ) since 4th December, 2018 vide FBR’s Notification No. 2236-IR-I/2018.
It is further clarified that all the Members of FBR hold the ex-officio rank of Additional Secretary as per Establishment Division’s Notification dated March 18, 1987.
It is pertinent to mention at the time of issuance of instant SRO Mohammad Jehanzeb Khan (BS-22 officer of PAS) was holding the charge of Chairman, FBR / Secretary Revenue Division.
After final vetting of Benami Transactions (Prohibition), Rules 2019 by Law & Justice Division and approval of the same by Cabinet Committee for Disposal of Legislative Cases (CCLC), the Summary containing the Benami Transactions (Prohibition) Rules, 2019 was moved by Mohammad Jehanzeb Khan Chairman, FBR / Secretary Revenue Division for the approval of Federal Cabinet.
The whole process of issuance of SRO and initiation of Summary for approval of Federal Cabinet is in legal conformity.
-
Benami property holder may get 7 years jail, pay 25pc as fine
In a significant move aimed at curbing illicit financial activities and tax evasion, the Benami Transaction (Prohibition) Act, 2017 has brought about stringent penalties for those involved in benami transactions in Pakistan.
(more…) -
FBR streamlines anti-benami regime to stop white collar crimes
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued official note to streamline Anti-Benami Regime to stop white collar crimes.
The FBR said that Benami Transactions, entailing the phenomenon of Benami moveable and immoveable properties, Bank A/Cs, Luxury Vehicles, off shore investments and stocks & shares is one of the biggest economic and financial threats, currently camouflaging the rampant corruption in our society, deadly confronting Pakistan’s taxation system and practically compromising the economic viability of the country.
Due to non existence of a special Law and Rules on Benami all Anti-corruption agencies have so far failed in tracing and documenting the real/beneficial owners and criminals went scot free.
In order to combat the menace of Benami and take the spirit of accountability forward Federal Government has operationalized Benami Transaction (Prohibition), Act, 2017, which was dormant since February, 2017.
Federal Board of Revenue has been assigned the administration and implementation of this new stream of Financial Crime Investigation & Enforcement.
This office order is aimed at streamlining of newly introduced Anti-Benami Regime in Pakistan.
I. Organizational Framework: Anti Benami Regime Pakistan.
FBR, as the parent/administering department envisages two distinct streams of functions for this White Collar Crime Investigation Agency: independent Authorities and supporting Administrative Oversight.
Both streams shall co-exist, though mutually exclusive yet complementing each other. For the legal functions, to be conducted by different Anti-Benami Authorities, their operational independence is fully protected under Benami Transaction (Prohibition) Act, 2017.
However FBR’s administrative facilitation, financial support and organizational oversight are essential for sustainable field operations, development and strengthening of this newly launched regime.
Authorities Core Functions Support Functions Initiating Officer (BS-18) -Initiation of Anti-Benami Proceedings -Attachment of Benami Properties -Inquiries and Investigations
-Filing of Reference to Adjudication Authority.
-Filing of Appeals
-Enforcement of various provisions of said Act.
-Examination and Analysis of complaints and references by
different agencies
– Development of Research &
Analysis Cells
-Data Archiving
-Services of Notices
-Litigation Management
Approving Authority (BS-20) -Highest Legal Authority at Anti-Benami Field formations -Supervisory/Administrative authority at Benami Zones
-Granting approval of all major legal and Enforcement functions
-Inherent powers u/s 16
-Confiscation of benami properties
-Administrative and Financial head of Anti-Benami Zone -Focal office for all correspondence with FBR and other Anti-Benami authorities
-Addressing genuine grievances and complaints
-Performance Management and Reporting
-Reposing officer in the cases of Initiating officers and Administrators
-Linkages with FBR portal and other economic & financial data bases
Administrator (BS-17) -Management of Attached properties -Management of Confiscated properties -Possession of benami properties
-Confiscation of benami properties
-Disposal of Confiscated properties
-Ware Housing in the cases of attached/confiscated movable properties
-Intelligence & Vigilance function of benami Zones -Spear heading all enforcement activities
-Maintenance of Discipline and motivation in field workforce
Adjudicating Authorities (BS-21/22) -Adjudication of References filed by Initiating Officers -Inquiries and investigation
-Attachment powers
-Statutory powers to add or delete any person arrayed as accused or property labeled as benami
– Passing Confiscation Order
-Constitution of Adjudication benches
-Administration of Officers and
Employees of Adjudication Authority
-Advice to the Federal Government
on Adjudication related matters
-Development of Case Studies -Critical References filed by Benami Zones
-Administration of justice
-Periodical Review of Law, Rules and patterns of crime
A. Authorities: Benami Transaction (Prohibition) Act, 2017 provides detailed description and powers & functions of various authorities. FBR has already notified the jurisdiction and appointment of field authorities at Islamabad, Lahore and Karachi.
In addition to their statutory functions, FBR deems it necessary to assigns field Benami authorities some support functions as well.
These support functions would help in realizing the desired results of this legislation and seamless implementation of this new regime.
B. Administrative Oversight: Director General-Anti Benami Initiative (DG- ABI)
In order to facilitate the Authorities and to ensure efficient and effective implementation of Anti-Benami law the office of DG-ABI is being raised to ensure smooth and effective implementation and enforcement of Anti-Benami Act, 2017. Without any interference in their respective legal domains, this administrative structure would provide the following support to Anti-Benami Zones.
i) DG-ABI would act as FBR’s focal office for proper implementation of Benami Transaction (Prohibition) Act, 2017. DG-ABI would act as a bridge between Anti-Benami Zones and FBR, between Zones and Adjudication Authorities and among all the Anti-Benami Zones as well.
ii) Establishment of Administrative hierarchy for the newly created Anti-benami Zones at Islamabad, Lahore and Karachi.
iii) Logistic Support, Financial Back up & autonomy and capacity building for Anti-Benami Zones.
iv) Development of uniform operational SOPs for transparent functioning of field authorities.
v) Contact point for all external agencies interacting with FBR in Benami related matters. Receipt, analysis and dissemination of benami related complaints, data, information and reference from all external Quarters.
vi) Development of linkages between Anti-benami authorities and FBR’s portal and external Data Bases. Central Data Bank on Benami.
vii) Quantitative Performance Evaluation of Anti-Benami Zones.
Qualitative Evaluation shall be made only after obtaining input from the concerned Adjudication Authority.
viii) Addressing all jurisdiction related issues in the light of FBR’s relevant notifications.
ix) Recommendations for review and amendments in Law, Rules and Procedure, covering Anti-Benami Regime
x) Personnel Management and Litigation
II. Directorate General-ABI: The Organizational structure
i) Directorate General-ABI would comprise a Director General, Director HQs and three Commissioners, Anti Benami Zones at Islamabad, Lahore and Karachi, responsible for their notified jurisdictions.
ii) Directorate General-ABI and its formations would be manned by officers of IRS and staffed by IR Department
III. Reporting Mechanism
i) Administrators and Initiating Officers shall report to their respective Commissioners, Anti-Benami Zones.ii) Commissioners, Anti Benami Zones would be independent in their Legal jurisdictions. For all administrative matters they will be reporting to DG-ABI Islamabad.
iii) DG-ABI would report to the National Coordinator for implementation of Benami Transactions (Prohibition) Act, 2017.
-
FBR directs banks to provide details of Benami account holders in 15 days
ISLAMABAD: Federal Board of Revenue (FBR) has directed all the banks to provide details of Benami account holders within next 15 days.
FBR spokesman on Monday said that FBR chairman Shabbar Zaidi had sent communication to all the heads of banks asking them to provide details of Benami accounts.
The spokesman said that the FBR desired the banks should obtain details of Benami account holders themselves under Benami Act 2017. “The FBR does not want to make direct contact with account holders,” the spokesman said.
The chairman referred My 30, 2019 meeting with the heads of banks in which it was decided that the banks would arrange details of Banami bank accounts.
The chairman assured the banks that the details would be kept secret. The spokesman further said that the FBR had authorized to identify Benami holders under the Benami Act, 2017.
The chairman further desired that FBR and banks should work together to get optimum results. The chairman said that to identify the Benami bank account holders the banks cooperation was very important.
-
IR officers posted to initiate proceedings in Benami cases
ISLAMABAD: Federal Board of Revenue (FBR) has notified the names of members for adjudicating authorities under Benami law and posted officers of Inland Revenue to initiated proceedings in Benami cases.
The following officers have been notified for the adjudicating authority under Benami Transactions (Prohibition) Act, 2017.
1. Jamil Ahmad (Retired PAS/BS-22), Chairperson
2. Muhammad Tanvir Akhtar (Retired IRS/BS-21), Member
3. Khaqan Murtaza (PAS/BS-21), Member
The FBR also transferred and posted following officer of Inland Revenue Service (IRS) to Benami Zones (I, II & III) established under Benami Transactions (Prohibition Act) 2017 are made with immediate effect and until further orders:
1. Hassan Zulfiqar (IRS/BS-20) has been transferred from the post of Commissioner-IR (Appeals-I), Islamabad and posted as Commissioner-IR/ Approving Authority (Benami Zone-I)
2. Muhammad Fiaz Hussain (IRS/BS-18) has been transferred from the post of Deputy Commissioner-IR, RTO, Islamabad and posted as Deputy Commissioner-IR/ Initiating Officer (Benami Zone-I)
3. Hasham Khalid Malik (IRS/BS-17) has been transferred from the post of Assistant Commissioner-IR RTO, Islamabad and posted as Assistant Commissioner-IR/ Administrator (Benami Zone-I)
4. Khalid Khan (IRS/BS-20) has been transferred from the post of Commissioner-IR (Zone-I), Corporate RTO, Lahore and posted as Commissioner-IR/ Approving Authority (Benami Zone-II)
5. Salman Naveed (IRS/BS-18) has been transferred from the post of Deputy Commissioner-IR (BTB Zone), RTO-II, Lahore and posted as Deputy Commissioner-IR/ Initiating Officer (Benami Zone-II)
6. Asim Raza (IRS/BS-18) has been transferred from the post of Deputy Commissioner-IR (BTB Zone), RTO-II, Lahore and posted as Deputy Commissioner-IR/ Initiating Officer (Benami Zone-II)
7. Rudar Amjad (IRS/BS-17) has been transferred from the post of Assistant Commissioner-IR, Corporate RTO, Lahore and posted as Assistant Commissioner-IR/ Administrator (Benami Zone-II)
8. Syed Shakil Ahmad (IRS/BS-20) has been transferred from the post of Commissioner-IR (Zone-II), LTU-II, Karachi and posted as Commissioner-IR/ Approving Authority (Benami Zone-III)
9. Syed Bilal Mahmood Jafri (IRS/BS-18) has been transferred from the post of Deputy Commissioner-IR (BTB Zone), RTO-II, Karachi and posted as Deputy Commissioner-IR/ Initiating Officer (Benami Zone-III)
10. Syed Mashkoor Ali (IRS/BS-18) has been transferred from the post of Deputy Commissioner-IR (BTB Zone), RTO-II, Karachi and posted as Deputy Commissioner-IR/
Initiating Officer (Benami Zone-III)11. Razi Ul Haq Qureshi (IRS/BS-17) has been transferred from the post of Assistant Commissioner-IR, RTO-III, Karachi and posted as Assistant Commissioner-IR/Administrator (Benami Zone-III)
The FBR said that the officers, who are drawing performance allowance prior to the issuance of this notification, shall continue to draw the said allowance on their upgraded posts.
Related Stories
-
FBR notifies adjudicating authorities for Benami cases
ISLAMABAD: Federal Board of Revenue (FBR) has notified adjudication authorities for Benami cases with immediate effect. The adjudication authorities have been set up at Karachi, Lahore and Islamabad.
The FBR issued a notification on Saturday stating that consequent upon approval of the federal government and in pursuance of Section 6 of Benami Transactions (Prohibition Act) 2017, adjudication authorities are hereby established and notified at Karachi, Lahore and Islamabad with immediate effect.
Section 6 of the Benami Transactions (Prohibition Act) 2017 explained the adjudicating authority as:
01. The federal government shall, by notification, in the official gazette, appoint one or more adjudicating authorities to exercise jurisdiction, powers and authority conferred by or under this Act.
02. Adjudicating authority shall consist of a chairperson and at least two other members.
03. A person shall not be qualified for appointment as the chairperson or a member of the adjudicating authority, unless that person:
a. is or has been a member of the Inland Revenue Service and has held the post of Chief Commissioner Inland Revenue or equivalent post in that service; or
b. is or has been a member of any federal service and has held the post of additional secretary or equivalent post in that service.
The chairperson and the other members of the adjudicating authority shall be appointed by the federal government in such a manner as may be prescribed.
The federal government shall appoint the senior most member to be the chairperson of the adjudicating authority.
-
Taxation not widely considered as civic duty in Pakistan
ISLAMABAD: The taxation has not been widely considered as civic duty in Pakistan, the World Bank said in a report issued recently.
The World Bank said that tax evasion is pervasive due to low tax morale and legal loopholes that enable high-value individuals to conceal their incomes.
Few Pakistani citizens think of themselves as taxpayers, even though they pay indirect taxes on their consumption. “Therefore, taxation is not widely considered as a civic duty and essential to finance public services.”
The report said that in turn, better-off households generally do not rely on public education or health services and have little stake in paying taxes to finance better public service provision.
At the same time, tax evasion is facilitated by legal loopholes.
The Law on Benami Transactions of 2016, which prohibits anonymous transactions, could have closed one of the major loopholes.
It has not however been implemented because secondary regulations have not been approved.
Prize bonds, a large source of domestic borrowing for the government, have hitherto been both anonymous and tax exempt, making them an instrument of choice for investing funds of unexplained origin.
Likewise, foreign remittances are tax exempt and widely used to repatriate illegally exported capital.
Low taxes on immovable property also offer opportunities for tax evasion and money laundering.
-
Banks assure providing details of Benami account holders to FBR
ISLAMABAD: The commercial banks have assured the Federal Board of Revenue (FBR) of providing details of Benami account holders for the purpose of broadening of tax base and documentation of economy.
An important meeting was held on Thursday of all chief financial officers with Syed Muhammad Shabbar Zaidi, chairman, FBR.
The CFOs of all commercial banks assured complete cooperation to the FBR chairman in providing details of account holders in order to broaden the tax base.
The participants of commercial banks included Chief Financial Officers of Allied Bank, United Bank, Habib Bank and others.
They assured their full cooperation to the Chairman FBR and welcomed his appointment as Chairman FBR.
The Chairman FBR thanked the Chief Financial Officers.
FBR sources said that the meeting was important related to next review of Financial Action Task Force (FATF) on Pakistan.
It is learnt that huge amount of money laundering was done through Benami bank accounts besides those were also used for tax evasion.
The FBR chairman has already made it clear that the current amnesty scheme is the last opportunity for people having undeclared income and assets.
-
Tax rates for proposed Amnesty Scheme 2019
KARACHI: Persons may be allowed to avail tax amnesty at one percent for undeclared banking transactions of past five years.
According to draft of Tax Amnesty Scheme 2019, credit entries in a person’s own bank account is allowed at one percent of the total credit entries from July 01, 2013 till June 30, 2018 or 10 percent of peak credit entries during the said period whichever is higher.
A tax rate of 10 percent has been proposed for declaration of benami assets.
For foreign liquid assets repatriated into Pakistan the tax rate shall apply at five percent.
The government has also proposed to allow transactions into benami bank accounts at only two percent of the total credit entries from January 01, 2017 till April 15, 2019 or 10 percent of peak credit entries during the said period whichever is higher.
Any other assets have been allowed to avail amnesty at 7.5 percent of the prescribed value.
The valuation has been proposed for undisclosed income and assets for the purpose of Section 5(2) of Income Tax Ordinance, 2001.
For undisclosed bank accounts, the credit entries from July 01m 2013 till June 30, 2018.
For undeclared open plots and land, flat the valuation shall be cost of acquisition or FBR values on April 15, 2019, whichever is higher.
For undisclosed superstructure, the valuation has been proposed at Rs1,500 per square feet.
For undisclosed motor vehicles, the valuation shall be costs incurred till original registration.
For undisclosed gold, the valuation shall be Rs5,000 per gram.