ISLAMABAD – Pakistanis holding secret UAE Iqama to land in big trouble asFBR has sought details from the United Arab Emirates (UAE) authorities ofthousands of Pakistani nationals who have acquired “iqama”(residential/work permit).
In a letter to the UAE Ministry of Finance, the Federal Board of Revenuesaid it was seeking data of those “who may have siphoned off fundsillegally from Pakistan, parked them in the UAE, and are now hiding behindiqama-based residential status”.
In the letter, the FBR’s directorate of internal taxes said informationalready received from the UAE was “not very substantial” as details of only3,620 accounts were reported and “the number of material accounts withsubstantial balance is negligible”.
“This is not only contrary to our expectations but also insignificant incomparison with Pakistan’s other exchange partners,” the FBR wrote in theletter.
“The internal deliberations on the matter indicate that it might be due tothe UAE’s domestic laws which allow foreign nationals to obtainresidence/iqama on the basis of investment beyond a certain threshold. Thismay be pointed out that we have absolutely no problem with the Pakistaninationals investing and doing business in the UAE legally with lawfullyremitted funds,” it added.
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However, the FBR wrote that it was “gravely concerned with the persons whomay have siphoned off funds illegally from Pakistan, parked them in the UAEand now hiding behind iqama-based residential status to circumventreporting under the CRS”.
“This is of course not a desired situation for both countries, particularfor Pakistan,” it added.
The FBR requested the UAE ministry to guide and assist it in the matter.“Article 26 and 27 of Pakistan-UAE DTA support formal and structureddeliberations on a matter of mutual or a unilateral concern,” added the FBRin the letter sent to Younis Haji Alkhoori, under-secretary at the UAEMinistry of Finance.
