ISLAMABAD – The PTI government has fulfilled yet another promise made tothe Nation.
PTI government has finally implemented the Benami Act in a bid to documentthe economy.
It has given a go-ahead to the tax officials to seize properties, vehicles,and bank accounts registered with fictitious individuals. From now onwards,all moveable and immovable assets registered with fictional entities toavoid taxes will be confiscated.
The law will finally take effect today following a delay of more than twoyears. Notably, the term ‘Benami’ means holding assets or properties in thename of a person other than the benefiter of that account.
However, more often than not, the term ‘benami’ is associated with thepractice of hiding the ownership of assets attained through illegalsources, dodging payment of government fee, taxes, and defrauding creditors.
In order to curtail this practice, the government has introduced a newpolicy. There are now hefty cash rewards for the whistleblowers on thebenami assets, both moveable and immovable.——————————
The legislation came into being through an act of Parliament in January2017, Benami Transactions (Prohibition) Act, 2017. However, the legislationwent backstage amid a delay in finalization of rules.
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In a recent development, the Federal Board of Revenue (FBR) has issued anotification that details the rules of the Benami Act.
Under the Act, three approving authorities will be set up in three cities,i.e., Lahore, Karachi, and Islamabad in the first phase. The jurisdictionof these authorities will be announced in a few days.
Moreover, the commissioner of income tax will perform the authority’sfunction. The designated officers will examine the available data to pointout benami assets. The offices will be provided with the data of propertytransactions and mapping of plazas in the first phase.
The tax officer will first issue a notice preventing the transfer,conversion, or disposition of the benami assets for a period of 90 days. Inthis period, the tax officer will vet the case and form a firstinvestigation report (FIR), which will then be referred to the adjudicatingauthority.
